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After 20 years, this lead is reduced on average to 13 points for both industrial and consumer markets (Robinson, 1988). The probable explanation is that, as a market matures, product quality advantages deteriorate. Unless the leader can innovate continuously, the other competitors will necessarily catch up gradually. High profits earned by the leader also attract entrants, so the market is likely to become more competitive. High shares can be defended, but some erosion seems to be inevitable. Market share and profitability The causal direction of the relationship between share and profit is unclear.
Define the appropriate timescale on which to evaluate market share, and examine the relationship between value and volume. Market definition A complicating factor is how do we define our market? If we start with the traditional marketing view of defining our market by the needs met, this may be too broad. For example, take the crisps market. What is the need met here? Nutrition possibly. But that would mean that our market would comprise all food products. 000003 per cent. Not very helpful when it comes to measuring trends.
8. Building a superior customer value proposition Finding the right customers Earning customer loyalty Finding the right employees Earning employee loyalty Gaining cost advantage through superior productivity Finding the right investors Earning investor loyalty. You can see from this list that there is a focus on three stakeholder groups – customers, employees and investors. He suggests different strategies to encourage loyalty in each. Since this unit is concerned with analysis and evaluation we will focus on the analytical side of this process and its implications rather than the implementation aspects.