[DS Notes] Market Share Alone is Never a Good Indicator of Business

1 min read
May 24, 2013

John Kirk explains on TechPinions why the church of market share is a deeply flawed argument. Yes, more market share means the product is more visible, it means there are more consumers of said product but unless it’s viewed in relation to revenue and profits, it’s never going to make sense (or cents). Business wise, it’s necessary for companies to look at the health and efficiency of a business in terms of how much return it earns per output. If a group of companies only earn a small fraction of the profit generated by the entire industry, dwarfed by the profit of just one other company within that industry, they need to conduct a serious evaluation of their strategies.

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