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domingo, 21 de noviembre de 2010
Forum: ¿Share of Market or Share of Incomes?
n crisis times...what is the most important indicator for brands: Share of Market or Share of Incomes? Why?
No brainer. Share of income. The ultimate goal of a company is the creation of wealth. Owning a larger part of the market doesn't necesarily generate income. If you ask me I'd rather make the same money with less effort. What's the use of gaining market share if you lose money doing that? MAny times companies that measure market share give large discounts to achieve sales goals, and by doing so, they lose money, but end up gaining market share. That, to me isn't a very good deal.
Agree, the ultimate goal of a company is the creation of wealth but seen as an increase of profit rather than revenue. An actual SOM could drive to a future increase of revenue and eventually profit, of course, depending on several factors.
Could be both... depending on the strategy or financial performance of the Company, size of the market, trends, market recovery expectations...
ResponderSuprimirNo brainer. Share of income. The ultimate goal of a company is the creation of wealth. Owning a larger part of the market doesn't necesarily generate income. If you ask me I'd rather make the same money with less effort. What's the use of gaining market share if you lose money doing that? MAny times companies that measure market share give large discounts to achieve sales goals, and by doing so, they lose money, but end up gaining market share. That, to me isn't a very good deal.
ResponderSuprimirAgree, the ultimate goal of a company is the creation of wealth but seen as an increase of profit rather than revenue. An actual SOM could drive to a future increase of revenue and eventually profit, of course, depending on several factors.
ResponderSuprimir