Search results
1 – 10 of over 152000Market share is often used to describe the position and success of a firm in an industrial sector. While the impact of market share is not always reflected in a firm’s…
Abstract
Market share is often used to describe the position and success of a firm in an industrial sector. While the impact of market share is not always reflected in a firm’s profitability or performance, many firms see it as an important organisational goal. Accordingly, it could be argued that market share influences the organisational thinking and strategic planning of small‐ to medium‐sized enterprises. However, it is unclear how and to what extent? The analysis indicates that firms with an increased market share differ significantly from firms with a decreased or static market share on the emphasis given to a number of environmental factors. The analysis shows that firms with increased market share are likely to have higher performance and in particular achieve enhanced financial performance, greater customer retention and customer satisfaction. This applies to all firm sizes. To ensure competitive advantage, firms need to consider market share in conjunction with overall profits.
Details
Keywords
Market share statistics indicate that success breeds success. To learn to take full advantage of your share, see “Do's and Don'ts,” page 34.
David Yerger and Gary David Sawchuk
The paper's aim is to analyze changes in the relative importance of Canada as a supplier for its home markets; and, the rising importance of China versus other Canadian trading…
Abstract
Purpose
The paper's aim is to analyze changes in the relative importance of Canada as a supplier for its home markets; and, the rising importance of China versus other Canadian trading partners.
Design/methodology/approach
The market overlap measure (MOM) statistic, developed by Sawchuk and Yerger is used to analyze the Canadian home market shares for Canada and every other nation with sales in the Canadian market for each of 61 different NAIC sectors (56 at the four‐digit NAIC level and five at the three‐digit NAIC level).
Findings
The USA remains the most important foreign supplier to Canadian markets with a weighted average 23.6 percent market share as of 2003 (Canadian‐based production having a 63.0 percent market share). US market share, however, has been declining by nearly a percentage point per year since 2000. Approximately, half of the lost US' market share has been captured by Canadian‐based firms and approximately a quarter has been captured by Chinese production. China's growth in Canadian market share places it second behind only the USA in terms of Canadian‐based firms' home market competitive exposure.
Research limitations/implications
The work does not include an analysis of service sector trade flows due to inadequate data.
Practical implications
The MOM statistic is shown to be a useful diagnostic tool for analyzing the level of, trends in, and industries driving the competitive exposure a nation's firms have on sales in a specified market.
Originality/value
The MOM statistic is shown to yield better insights regarding the actual degree of competitive exposure than does the more commonly used similarity indices such as Finger‐Kreinen.
Details
Keywords
Christie L. Comunale and Thomas R. Sexton
Arthur Andersen’s conviction and its decision not to audit public firms will transform the Big 5 into the Big 4. Meanwhile, other Big 4 firms face investigations that threaten…
Abstract
Arthur Andersen’s conviction and its decision not to audit public firms will transform the Big 5 into the Big 4. Meanwhile, other Big 4 firms face investigations that threaten their future market shares. The article compares the observed post‐scandal shifts in market share with those estimated by a Markov model. It then estimates the year‐by‐year and long‐term market shares that the Big 4 firms would have achieved had they remained untouched by these investigations. The study finds that the absence of Arthur Andersen alone would not have led to excessive market share concentration. It demonstrates how the post‐scandal shifts reveal the impacts of the investigations on the Big 4 firms and provides market share benchmarks against which the firms can evaluate the long‐term effects of the investigations. Finally, the article concludes that a firm’s long‐term gain in market share depends on its ability to retain audit clients.
Details
Keywords
Gaining market share can be a means of obtaining profits. While one cannot develop precise prescriptions for gaining market share in complex and dynamic environments, a stylized…
Abstract
Gaining market share can be a means of obtaining profits. While one cannot develop precise prescriptions for gaining market share in complex and dynamic environments, a stylized model can provide a reference point for evaluating what to do in more complex situations.
The accepted primary objective of most companies, which is reflected in their marketing strategy, is to maximise profitability.
Feiyang Guan, Tienan Wang and Linbing Sun
This paper aims to examine how the firm’s global coopetition network position impacts market share and to explore the multiple moderating effects of trade network strength and…
Abstract
Purpose
This paper aims to examine how the firm’s global coopetition network position impacts market share and to explore the multiple moderating effects of trade network strength and structures on the relationship between firm global coopetition network position and market share.
Design/methodology/approach
This paper selects global automobile manufacturing firms as samples whose classification is “Automobile” in the Factiva database from 2014 to 2018 and develops the measurement for global coopetition network and trade network by using Ucinet6. Finally, Stata was used for data analysis.
Findings
This paper finds that structural holes and centrality are beneficial to improve global market share. And the trade network strength and structures have positive multiple moderating effects on the relationship between the firm global coopetition network position and market share.
Originality/value
This paper explores industrial international competitiveness according to the intricate trade relations among countries and the impact of industrial international competitiveness on the relationship between global coopetition network position of brand firms and market share. The results of this paper expand the current literature on the relationship between characteristics of coopetition network and trade network.
Details
Keywords
Jing Sun, Amanuel Tekleab, Millissa Cheung and Wei-Ping Wu
Prior research on interfirm collaborations has demonstrated that trust and contract are two central governance mechanisms that influence a firm’s knowledge sharing decision and…
Abstract
Purpose
Prior research on interfirm collaborations has demonstrated that trust and contract are two central governance mechanisms that influence a firm’s knowledge sharing decision and the subsequent effect on performance. However, we know little about how effective these mechanisms are in different market conditions and levels of organizational innovativeness. This study aims to advance the literature on interfirm knowledge sharing by exploring these contingencies and by providing an alternative explanation of the contradictory effects of knowledge sharing on firm performance.
Design/methodology/approach
The authors collected 156 firms’ relationships with their suppliers in two batches from 300 firms in the 2017 list of Statistics in the Zhejiang province in China. The authors used unstructured interviews and formal questionnaires to collect data from these firms.
Findings
Market turbulence served as a boundary condition for the effect of interfirm trust and formal contracts on knowledge sharing. Both interfirm trust and formal contracts, as governance mechanisms, are effective in raising interfirm knowledge sharing only when the firms operate in high turbulent markets. On the contrary, knowledge sharing negatively affected firm performance when firms exhibit low organizational innovativeness. Moreover, a three-way interaction among market turbulence, organizational innovativeness and knowledge sharing revealed that when market turbulence and organizational innovativeness were both low, interfirm knowledge sharing was detrimental to firm performance.
Practical implications
Based on the results, this study recommends managers consider external (market turbulence) and internal (organizational innovativeness) when firms decide to share knowledge and benefit from such activities.
Originality/value
This study extends prior research on the determinant of knowledge sharing and clarifies the inconsistent findings of knowledge sharing on firm performance. Thus, strategic organizational leaders need to pay attention to when they need to share information with suppliers to best benefit from those collaborations.
Details
Keywords
Zhenfeng Liu, Yujie Wang and Jian Feng
This paper aims to study vehicle-type strategies for the manufacturer's car sharing by accounting for consumers' behavior and the subsidy.
Abstract
Purpose
This paper aims to study vehicle-type strategies for the manufacturer's car sharing by accounting for consumers' behavior and the subsidy.
Design/methodology/approach
The authors develop a game model, in which a monopoly manufacturer that can produce gasoline vehicles (GVs) or energy vehicles (EVs) not only sells vehicles in the sales market, but also rents them out in the sharing market by the self-built platform. The manufacturer strategically chooses which type of vehicles based on consumers' behavior and whether the government provides the EVs’ subsidy.
Findings
When consumers' low-carbon awareness is relatively high or the marginal cost is low, the manufacturer chooses EVs. The manufacturer chooses GVs when the low-carbon awareness and the marginal cost are low. Only when the low-carbon awareness and the subsidy are not too low, the manufacturer who originally chose GVs launches EVs. When the low-carbon awareness is high, the excessive subsidy discourages the manufacturer from entering the sharing market. If the government provides the subsidy, the manufacturer launches high-end EVs. Otherwise, the manufacturer launches low-end EVs. Moreover, the subsidy increases consumer surplus and social welfare since the high subsidy makes EVs’ sharing market demand be negative.
Originality/value
This study enriches the literature on vehicle-type strategies for the manufacturer's car sharing, owns a practical significance to guide the manufacturer's operation management in the car sharing market and provides advice on whether the government should provide EVs’ subsidy.
Details
Keywords
Kari Heimonen and Outi Uusitalo
The purpose of this paper is to examine the impacts of advertising expenditure on brands' market shares, utilizing a novel four‐week advertising‐sales data from the highly…
Abstract
Purpose
The purpose of this paper is to examine the impacts of advertising expenditure on brands' market shares, utilizing a novel four‐week advertising‐sales data from the highly competitive oligopolistic Finnish beer market in which price competition among the homogeneous larger‐type beer brands is not allowed during the period of the study.
Design/methodology/approach
Competition is modelled using the Lanchester model. The impacts of advertising on market shares are estimated using the impulse‐response functions from vector autoregression, and the full information maximum likelihood and advertising elasticities.
Findings
Some new insights into beer market dynamics are obtained. First, the impacts of advertising are not similar across brands. Second, overspills of advertising impacts across brands are detected. Third, the reactions to competitors' advertising attacks are mild.
Originality/value
The paper utilizes four‐week brand‐level data on the market shares of the leading beer brands in Finland and the brands' advertising expenditure. During the period of the data, price competition is not allowed, which creates a unique opportunity to study the impacts of advertising on the market shares of brands.
Details