Finance & Stratégie

The market share paradox: Why industry leaders sometimes lose money

A critical analysis of the market share-profitability relationship through Bourantas & Mandes' dynamic model, revealing when bigger isn't always better

19 juin 2024
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10 min de lecture

> "Help us understand what drives our market share, and identify the levers we can pull to grow it and ultimately increase profitability"

They had monthly market share data from Nielsen, search keyword volumes, social media mentions, competitive pricing data—mountains of information.

But as we dug deeper, a more fundamental question emerged: Should growing market share even be the goal?

We started by building predictive models—testing everything from advertising spend to distribution density, from product innovation metrics to customer satisfaction scores. But the models kept revealing an uncomfortable truth: the companies gaining the most market share weren't always the most profitable.

À propos de l'auteur

Cyril Noirot

Cyril Noirot

Lead Data Scientist

Data scientist freelance. Je conçois et déploie des systèmes de décision — prévision, pricing, marketing measurement, optimisation.

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