The Industry‐specific Basis of the Market Share‐Profitability Relationship
Abstract
This is a follow‐up of a study conducted by William Shanklin and published in 1988. He found a positive relationship between market share and return on total assets, but concluded that the absence of market share leadership did not preclude achievement of superior profitability. Attempts to verify Shanklin′s findings, but analysis of the data in this study does not support Shanklin; it suggests that the relationship between market share and profitability is questionable, except in certain industries. The pursuit of market share is not a useful “generic” strategy which can be applied in most industries.
Keywords
Citation
Fraering, J.M. and Minor, M.S. (1994), "The Industry‐specific Basis of the Market Share‐Profitability Relationship", Journal of Consumer Marketing, Vol. 11 No. 1, pp. 27-37. https://doi.org/10.1108/07363769410053673
Publisher
:MCB UP Ltd
Copyright © 1994, MCB UP Limited