Being the market leader is not everything
Monday, August 27, 2018 - 08:50
in Mathematics & Economics
The market share of a company does not have a strong influence on its financial performance, a new study in marketing at the Faculty of Management, Economics and Social Sciences of the University of Cologne shows. Companies should instead invest in building customer relationships and a strong brand. If the market share increases by 1 percent, the financial performance of companies only increases by 0.13 percent on average. To arrive at these results, the researchers examined the relationship between market share and financial profitability using 89 published studies from six different continents published between 1972 and 2017.