The Market Share Impact of the Fit between Market Leadership Efforts and Overall Strategic Aggressiveness

Abstract

The current study takes a contingency theory approach to the relationship between market leadership and a variety of marketing strategy concepts making up a firm’s strategic profile, including a firm’s Miles and Snow strategy type, market growth, service growth, service focus, market coverage, the Porter strategy group, and market orientation. The results of the study support this approach, showing that at least six of the seven strategic contingency combinations exhibit a significant relationship to market share. Utilizing a sample drawn from the financial services industry, it is found that firms possessing a recommended “fit”, as when market leader firms exhibit a more aggressive marketing strategy profile, tend to have higher levels of market share. The results of the study also reveal that a firm’s market share performance is related to the total number of strategic “fits” between the firm’s market leadership position and the various components of the firm’s strategic profile.

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