market share isn’t a very good goal

The New Yorker : talk : content

a study of the performance of twenty major American companies over four decades found that the ones putting more emphasis on market share than on profit ended up with lower returns on investment; of the six companies that defined their goal exclusively as market share, four eventually went out of business.

I’ve believed this for decades. It is perfectly reasonable to be a successful “niche” player in a larger market, eg. Apple Computer.

I work for the sixth largest software company in the world. We used to be the seventh largest, after Electronic Arts. I’m not entirely sure why we think this measure is so important; I’d rather we measured our success, not our size…

posted at 11:14 pm on Wednesday, January 03, 2007 in Links | Comments Off on market share isn’t a very good goal

No Comments

No comments yet.

RSS feed for comments on this post.

Sorry, the comment form is closed at this time.