Customer Reviews

The Myth of Market Share: Why Market Share Is the Fool's Gold of Business (Crown Business Briefings)

5 star:		(2)
4 star:		(2)
3 star:		(1)
2 star:		(0)
1 star:		(1)

 

 

Heard the taped version of THE MYTH OF MARKET SHARE by
Richard Miniter, which presents an interesting concept that says that
being the biggest player in a market doesn't mean that you will make the
most profits . . . in fact, the opposite is often true; i.e., the
bottom line is that size does NOT automatically lead to profits.

According to Miniter, there are three types of companies in every line of
business: the profit leaders, which make the most money; the market
leaders, which have the largest share of the market; and everyone else.
And the goal, at least as it seems to me, should be to become the
profit leader. Such a company doesn't go in for the dangerous
discounts that sap the strength of its brands in pursuing market share.
It avoids foolish mergers for the sake of size. And it focuses on the
customer, rather than on the competition.

The above might seem easier said than done, but real-life examples
(Mobil, Roche Diagnostics, Dell, etc.) so how this can be accomplished.
As a result, I liked the book and would recommend it, if just for the
conclusion which drives home this key marketing point:

In contrast, companies that are profit leaders can usually survive and
gain a larger share of the market--as long as they continue to focus
on giving the customers precisely what they want, at a profit.

The concept is a good one. Too many times we hear that a sale must be won or the competition will get it (regardless of profit). Unfortunately, those executives who need Mr. Miniter's message the most will probably never hear or understand it.

Unfortunately for the book, the author's writing style is mostly surface gloss and generalized facts and figures that "supports" his points. He cites numerous company examples, but I walked away with the feeling that each one was much more complex than he leads the reader to beleive and there were many more variables to the success or failure being presented as "evidence". I have little doubt that he has a good point, but I don't think he backs it up very well.

Case in point: On Page 94, he talks about the Smart car and questions why Daimler would venture into the small car market with such an introduction. Actually, they did not create the car, a small independant maker did and they acquired it. The story of this independant car maker and Daimler's insistance in buying them out would have made more interesting reading and could have added to the depth of the book.

Concept 4 stars, writing 2 stars

I am the CEO of a midsized company and I don't know how this man is able to publish. He butchers the English language and is terrible at articulating his ideas. This is a TERRIBlE read.

This book is like a well kept secret.

Miniter's work is antithetical to prevailing historically established schools of thought. My understanding of strategic management grew exponentially when I read his work. I now understand why some businesses will doom themselves and why others work. If you read one book this year read this one. I bought 20 copies a couple of years back. I thought his work so important that I made my students read it.

One key point made in the book is that what worked in one epochal moment of history (onset of the industrial era) doesn't necessarily work today.
We live in a new era of market specialization and adhocracy something both your freshly graduated MBA and veteran manager probably hasn't grasped either.

Miniter strongly suggests businesses should forget market share and focus on profits. His book is in my opinion well written. It is not something you should read in one sitting. I would read a chapter at bedtime and marvel at the wisdom found there. Easy to read and to the point, this book is a gold mine. I will never see the corporate landscape in the same way again.

One thing I have learned is that the world is full of stupid people and they work next door. Read the book and hope your competition never does the same. Knowledge is power. When you understand, you will be empowered.
regards,
David Bennett [...]

The theme of this book can be summarized in pg 15 as follows: "Market share should simply be seen as a by product, a secondary effect, of pursuing a company's core mission. Market share is not an advantage by itself. It is the result of a sustainable competitive advantage, not the cause."

To support his core message, the author, using plenty of secondary research data and case studies (Dell, Ryannair, Sony, Daimler Chrysler, Microsoft, Boeing, Visa....), hit hard on the "Market Share" myths, including:-
- Leadership = Market Power
- Size naturally creates higher returns
- Economiies of scale kick in
- The experience curve improves efficiency
- Quality management (good staff attracted by size) leads to growth

Furthermore, insightful discussions are made on why myths persist, why profit leaders beat market leaders, and of course, exceptions owing to networked markets.

Definitely a very resourceful book for those who needs to write a thesis on the topic or to make strategic decisions for any company. Highly recommended!

I have over 15 year experience in the food and beverage industry. Market share in the malt beverage industry is very competitive. The standard measure for judging success with in the segment has always been market share. I have represented the largest brewer to some of the smallest. In representing many specialty and micro brands, market share was not as important to retailers and distributors as profitibility. This book details the impact of distribution, marketing, pricing, merchandising, customer service, branding and many other concepts. The book is full of examples from all types of companies. It is a great refresher and also can give you different views on rewriting your resume or brushing up for interviews.