The Myth of Market Share: Why Market Share Is the Fool's Gold of Business

by Richard Miniter

Book Overview

Richard Miniter skewers the sacred cow of market share and debunks the conventional wisdom that corporate profits rise as you grab more territory in the marketplace. Market share is the fool's gold of modern business. In reality, companies that maximize market share end up minimizing profits, while their smarter rivals earn higher returns. Three times out of four, on average, the most profitable firm is not the one with the largest slice of the market...

• Format: Hardcover
• Language: English
• ISBN: 0609609882
• ISBN13: 9780609609880
• Release Date: October 2002
• Publisher: Crown Business
• Length: 181 Pages
• Weight: 0.65 lbs.
• Dimensions: 0.8" x 5.3" x 7.9"

Customer Reviews

A MUST READ FOR ALL BUSINESS MANAGERS

This book is like a well kept secret. Miniter's work is antithetical to prevailing historically established schools of thought. My understanding of strategic management grew exponentially when I read his work. I now understand why some businesses will doom themselves and why others work. If you read one book this year read this one. I bought 20 copies a couple of years back. I thought his work so important that I made my students read it. One key point made in the book is that what worked in one epochal moment of history (onset of the industrial era) doesn't necessarily work today. We live in a new era of market specialization and adhocracy something both your freshly graduated MBA and veteran manager probably hasn't grasped either. Miniter strongly suggests businesses should forget market share and focus on profits. His book is in my opinion well written. It is not something you should read in one sitting. I would read a chapter at bedtime and marvel at the wisdom found there. Easy to read and to the point, this book is a gold mine. I will never see the corporate landscape in the same way again. One thing I have learned is that the world is full of stupid people and they work next door. Read the book and hope your competition never does the same. Knowledge is power. When you understand, you will be empowered. regards, David Bennett [...]

Definitive guide on the concept of "Market Share"

The theme of this book can be summarized in pg 15 as follows: "Market share should simply be seen as a by product, a secondary effect, of pursuing a company's core mission. Market share is not an advantage by itself. It is the result of a sustainable competitive advantage, not the cause." To support his core message, the author, using plenty of secondary research data and case studies (Dell, Ryannair, Sony, Daimler Chrysler, Microsoft, Boeing, Visa....), hit hard on the "Market Share" myths, including:- - Leadership = Market Power - Size naturally creates higher returns - Economiies of scale kick in - The experience curve improves efficiency - Quality management (good staff attracted by size) leads to growth Furthermore, insightful discussions are made on why myths persist, why profit leaders beat market leaders, and of course, exceptions owing to networked markets. Definitely a very resourceful book for those who needs to write a thesis on the topic or to make strategic decisions for any company. Highly recommended!

A Must for those exploring Consumer Products

I have over 15 year experience in the food and beverage industry. Market share in the malt beverage industry is very competitive. The standard measure for judging success with in the segment has always been market share. I have represented the largest brewer to some of the smallest. In representing many specialty and micro brands, market share was not as important to retailers and distributors as profitibility. This book details the impact of distribution, marketing, pricing, merchandising, customer service, branding and many other concepts. The book is full of examples from all types of companies. It is a great refresher and also can give you different views on rewriting your resume or brushing up for interviews.

The myth of market share. Why market share is the fool's gold of business

This is one of the more practical-oriented books about makket share; there are included many excamples from the practice; I need it for my phd thesis

Bigger is not always better!

Heard the taped version of THE MYTH OF MARKET SHARE byRichard Miniter, which presents an interesting concept that says that being the biggest player in a market doesn't mean that you will make themost profits . . . in fact, the opposite is often true; i.e., the bottom line is that size does NOT automatically lead to profits.According to Miniter, there are three types of companies in every line of business: the profit leaders, which make the most money; the market leaders, which have the largest share of the market; and everyone else.And the goal, at least as it seems to me, should be to become the profit leader. Such a company doesn't go in for the dangerous discounts that sap the strength of its brands in pursuing market share. It avoids foolish mergers for the sake of size. And it focuses on the customer, rather than on the competition.The above might seem easier said than done, but real-life examples(Mobil, Roche Diagnostics, Dell, etc.) so how this can be accomplished. As a result, I liked the book and would recommend it, if just for the conclusion which drives home this key marketing point:In contrast, companies that are profit leaders can usually survive andgain a larger share of the market--as long as they continue to focuson giving the customers precisely what they want, at a profit.