Why is increasing market share important to a business?
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This is for school i just need a list of reasons why business are always looking to increase market share. Thanks =]
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Answer:
An increasing market share brings greater brand recognition. However, increasing market share is interesting only if you make money on whatever you sell. If you loose money and increase your market share (easy to do : just sell a price, not a product) you are on the fast track for bankruptcy. However, if you still do not generate a profit and if your increased market share will enable you to lower cost (economy of scale - greater efficiency - etc.) then it become paramount that you increase your market share. In the end, if you make money and increase your market share, you just make so much more money. This is way better than the alternative: loosing money and increasing your market share without hope of lowering your costs and making money. Sure recipe for disaster.
Drew at Yahoo! Answers Visit the source
Other answers
Higher market share is a win win situation. As the market grows, the firm grows faster to its competitors. Being a market leader makes it easier to gain new customers because of a great name recognition.
Yorky
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