Market share: Key to profitability?

Donald L. McLagan

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Business Strategies and Innovation Consumer Market Behavior and Pricing Strategic Planning and Analysis

Abstract

Concepts award market share the key position in the determination of competitive profitability. However, the strategic planning concepts of the experience curve, the market share/profitability correspondence, and the growth/share matrix were developed during pre‐OPEC years. While the Strategic Planning Institute and The Boston Consulting Group have taken their applications far beyond the initial concepts, it is simplified theories, not their more sophisticated elaborations, which are being popularized and used in many of today's planning processes.

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