...Competitor-oriented Objectives: The Myth of Market Share J. Scott Armstrong, The Wharton School, University of Pennsylvania, Philadelphia, PA 19104 E-mail: armstrong@wharton.upenn.edu Phone 610-622-6480; Fax 215-898-2534 Kesten C. Green, Department of Econometrics and Business Statistics Monash University, VIC 3800, Australia E-mail: kesten@kestencgreen.com Phone +64 4 976 3243; Fax +64 4 473 0643 February 21, 2006 IJB05CmObj27.doc International Journal of Business (forthcoming) Abstract Competitor-oriented objectives, such as market-share targets, are promoted by academics and are commonly used by firms. A 1996 review of the evidence, summarized in this paper, indicated that competitor-oriented objectives reduce profitability. However, we found that this evidence has been ignored by managers. We then describe evidence from 12 new studies, one of which is introduced in this paper. This evidence supports the conclusion that competitor-oriented objectives are harmful, especially when managers receive information about market shares of competitors. Unfortunately, we expect that many firms will continue to use competitor-oriented objectives to the detriment of their profitability. Key words: competition, market share, objectives, profitability. JEL CLASSIFICATION: L21, M21, M31. 2 Many managers have a natural inclination to want to beat their competitors. Our concern in this paper is the relationship between competitor orientation and performance. We show that competitor-oriented...
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...RECENT TRENDS IN CAPITAL MARKET OF BANGLADESH: CRITICAL EVALUATION OF REGULATION by Syed Golam Shahjarul Alam A thesis submitted in partial fulfillment of the requirements for the degree of Professional Master in Banking and Finance Examination Committee: Dr. Sundar Venkatesh (Chairperson) Dr. Winai Wongsurawat Dr. Yuosre Badir Nationality: Previous Degree: Bangladeshi Master of Business Administration University of Dhaka Dhaka, Bangladesh Bangladesh Bank (Central Bank of Bangladesh) Scholarship Donor: Asian Institute of Technology School of Management Thailand May2012 ACKNOWLEDGEMENTS My greatest Gratitude is given to Dr. Sundar Venkatesh, my project advisor, for his deep insight in capital market, which helped me to accomplish the project paper. His dedication towards teaching, motivating and supervising influenced me greatly, leading to do my project work carefully and seriously. I wish to express my deepest gratitude and appreciation to Bangladesh Bank, My office, for granting me a scholarship, to pursue my Masters in banking and finance. I express my gratitude and deepest appreciation to my friend Ms. Senjuti binte rafiq, My Colleagues in Bangladesh Bank and DSE Library staffs who helped me by providing valuable suggestions and necessary data for my analysis. I am very much thankful to Dr. Winai Wongsurawat and Dr. Juthathip Jongwanich for their valuable suggestions regarding my project. I express my gratitude and deepest appreciation to Ms...
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...SEBI GUIDELINES FOR BONUS ISSUE SEBI is playing a vital role in regulating capital markets. Offer Documents / Prospectus for almost all types of issues are sent to SEBI for their comments. SEBI has framed guidelines for all types of issues including Bonus Issue. In case of Bonus Issue, there is no offer document as there is no involvement of any consideration. No funds are coming into the corpus of the company. Therefore, companies are required to just follow the guidelines issued by SEBI. Companies are not required to take any specific approval from SEBI. Things to remember before considering Bonus Issue Bonus shares cannot be issued if the company has come out with any public / rights issue in the past 12 months. Bonus shares cannot be issued in lieu of Dividend. Bonus shares can be issued only out of free reserves (i.e. reserves not set apart for any specific purpose) built out of the genuine profits or share premium collected in cash only. Bonus shares cannot be issued out of the reserves created by revaluation of fixed assets. If the existing shares are partly paid up, the company cannot issue Bonus Shares. It will be appropriate to first make the shares fully paid up before issuing Bonus Shares. It should be ensured that the company has not defaulted in payment of interest or principal in respect of fixed deposits and interest on existing debentures or principal on redemption thereof and It should be ensured that the company has sufficient reason to believe that...
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...Stock market crash of Bangladesh in 2010-11: Reasons & roles of regulators Sangit Saha Degree Thesis Förnamn Efternamn International Business 2012 DEGREE THESIS Arcada Degree Programme: International Business Identification number: Author: Title: 11497 Sangit Saha Stock market crash of Bangladesh in 2010-11: Reasons & roles of regulators Andreas Stenius Supervisor (Arcada): Commissioned by: Abstract: The aim of the thesis is to determine reasons of the stock market crash in Bangladesh in 2010-11 and roles of the regulators and government since the crash took place. The theoretical background of the study includes brief introduction of Bangladesh stock market with its structure and different regulatory and intermediary organizations. It also describes one international stock market crash and stock market crash of Bangladesh in 1996. For the theoretical part investigation report of Khondkar Ibrahim Khaled is used as the main secondary resource. The report helps to get background of the crash with reasons and role of different regulatory and intermediary organizations. Self-administered questionnaire is used to obtain primary data for the study. The author sent 25 questionnaires to employees of broker houses and general investors but 18 replied. The result of the Self-administered questionnaire helped author to find some other reason behind the stock market crash in addition with reasons provided in the investigation report. Moreover...
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...Part 3: Market Share Analysis Student’s name: Blendrit Elezaj Date: 2/23/2016 Firm: Sigma Industry: Alpha Period no. 3 You want to know how your brand is doing in terms of acquiring the market share as compared to the competitors within the same target market segment. 1. Name of your brand: SOFI and the target market: Savers. 2. Utilizing the table below, calculate the metrics given in the first column for your assigned brand for the current period as well as three of your top competitors. Target Segment | Your Brand: Sofi | Competitor #1Brand Name: Tone | Competitor #2Brand Name: Noon | Competitor #3Brand Name: Lock | Segment Share | 3.6% | 21.9% | 17.1% | 14.3% | Purchase Intentions | 4.9% | 20.9% | 18.1% | 12.5% | Awareness | 29% | 63% | 60% | 61% | Rel. Attractiveness | 16.89 | 33.17 | 30.16% | 20.49 | Rel. Availability | 73.46% | 1.04% | 94.47% | 1.14% | 3. On the basis of the above analysis of 3 A’s, discuss the strengths and weaknesses of your brand. * Weaknesses: New in town, has a very small screen size, brand awareness is low, rel. attractiveness and availability are also low. More hasto be done in (targeted) advertising, distribution and messages. * Strength: It is more customer specific than any of the other three competitors – we made this for savers. This season we will update the screen and other aspects to adjust to the new needs of the customers. 4. Discuss ways to improve the market share of your...
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...Market Share 1. Air Conditioners Market Share The India air conditioner market in 2011 was estimated at 3.14 million units. According to latest data from market researcher GfK-Nielsen India, LG's volume market share in multi-brand outlets-a key sales channel that accounts for almost 90% of AC dealerships-stood at 17.7% in May 2012 against 18.3% of Voltas. Samsung retained its third slot in room ACs but its market share has plunged from 14.5% in July 2011 to 10% in May 2012. The drop was a result of it vacating the window AC segment this year; now it is not far behind Japanese brand Panasonic, which has doubled market share to 9.9% in the last 10 months. Even Hitachi increased its market share from 5.2% to 7.3% in the period. Players Brand | Company | Onida | Mirc electronics Limited | Videocon | Videocon International Limited | LG | LG Electronics India Limited | Samsung | Samsung India Electronics Limited | Whirlpool | Whirlpool of India Limited | Godrej | Godrej and Boyce Mfg. Co. Limited | Voltas | Voltas Limited | Electrolux | Electrolux Kelvinator | Blue Star | Blue Star India Limited | Daikin | Daikin Industries Limited | Past Market Share Name of the Company | 2002-03 | 2005-06 | 2007-08 | Blue Star | 14.53 | 16.51 | 17.98 | Voltas | 12.12 | 11.95 | 14.11 | L G Electronics India Pvt. | 13.54 | 18.85 | 13.2 | Samsung India Electronics Pvt. | 3.93 | 7.01 | 6.88 | 2. Washing Machine The Indian washing machine market continues...
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...BLUE OCEAN STRATEGY by W Chan Kim & Renee Mauborgne “Large R & D Budgets are not the key to creating new market space. The key is making the right strategic moves.” The article “Blue Ocean Strategy” by W Chan Kim and Renee Mauborgne published in the year 2005 talks about creating an uncontested market space through intelligent strategic moves. By analyzing thirty different industries across a century the writers opined that sustaining high performance standards in an overcrowded industry might not be enough for being a leader or having the major chunk of the market pie. It is possible only by altering boundaries of the currently existing industries. Red ocean strategies as referred by the authors represent all the industries today where each and every company fights fiercely to gain the market space. The process of outperforming the competitors incurs huge cost and hence plummet the margins. The products turn into commodities leading to heavy competition and hence the market space turns bloody. On the other hand, Blue Ocean strategy demand is generated from boundaries outside the domain of the industry. Sometimes this might lead to generation of altogether new industry. The authors have lucidly explained in the article how Cirque Du Soleil was able to create its own market space in a dying Circus industry whose performances were marred by people’s concerns for animals. Cirque was able to tweak the boundaries of both theater and circus industry and rejuvenated the Circus...
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...Increasing market share and profit I. Strategies 1. Selling more to existing customers - Encourage more frequent buying Increase market share by getting customers to buy more frequently. If research shows customers buy at a particular time, make contact with them just beforehand. Adding value to products and services to ensure repeat business, adding to a service at little cost that is useful to your customers - Get customer to spend more Encourage customers to buy a premium product or service that better meets their needs and provides a superior return. Offer purchase incentives and price promotions on items that they usually buy from competitors, such as 'buy one get one free' or 'buy for ten months and get two free'. 2. Getting old customers back - Find out what changed Identify why customers stopped buying. Consider whether product or service is: • no longer necessary • too expensive • unsatisfactory • being beaten by a competitive offer - Rebuild contact with customers Try to have some form of regular contact e.g. monthly or quarterly phone calls, formal or informal visits to customers, mailshots or email newsletters - so that customers don't feel they are being ignored and look elsewhere. Rebuild contact, understand, focus on customers’ needs, e.g a letter expressing regret that they have stopped buying and making them a time-limited offer. ...
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...Venture capital flows to tech startups Tech investors at the iHub offices at Bishop Magua Centre on Ngong Road, Nairobi. Stephen Mudiari | Nation By JEVANS NYABIAGE jnyabiage@ke.nationmedia.com Posted Monday, November 8 2010 at 16:00 In Summary * Equity financiers scout for buyouts in Kenya as mobile and internet spur innovation Kenya’s tech environment is bustling with innovations driven by mobile telephony and strong entrepreneurial spirit, but access to capital remains a major constraint. This has created a magnet of venture capitalists in Kenya seeking to fund tech startups. Venture Capitalists are investors who scout for promising startups and small businesses with potential for huge profits. Venture Capital funds make money by owning equity in the companies they invest in. Mr Brian Hirman, a co-founder of eVA Fund, says Nairobi is recording high growth of start-ups in digital, ICT, web and mobile. “There’s a lot of entrepreneurship also motivated by Kenyan whiz kids who have studied in the US or Europe. There are lots of bright people with strong digital business ideas,” says Mr Hirman, whose fund has invested in Kenyan tech start-ups. Pitching for cash On October 18, 2010, at the Ihub incubation centre, five venture capital funds listened to pitches from eight startups. The forum was organised by the Kenya ICT Board as follow-up to the $3 million in content grants funded by the World Bank. The Venture Capitalists, or VCs, on the panel were eVA Fund, Fanisi...
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...Chapter – I INTRODUCTION 1.Introduction of Project Work : Why Commodity Futures? ADVANTAGES OF FUTURES MARKET TO ITS VARIOUS PARTICIPANTS Stockiest / Jewelers / Farmers | | Traders, Jobbers & Arbitragers | * Can hedge their underlying * Get an extensive market * Can get loan against Warehouse Receipts | | Trading Opportunity | Investment Opportunity | Corporates | | Additional Advantage | * Can hedge by offsetting product exposure * Can hedge by parking only margin amount * Can buy goods without agents with Quality Assurance | | Spread Trading Opportunity | Arbitrage Opportunity | TABLE-1.1 Why Indian Commodity Exchange? India is essentially a commodity based economy constituting of Agriculture, Energy, Precious Metals and Base Metals. Couple of unique features / advantage seen in our exchanges, which is not seen elsewhere, are: 1. Timings: Our Trade timings are well matched with Global Market timings. 2. Number of commodities: Nowhere in the world more than 8 to 10 commodities are traded in a single exchange, but our exchanges are successfully managing over 40 commodities individually. Why Sharekhan? Superior & Consistant Research Performance of…. 1. Cutting Edge Analysis of Major Commodities 2. Relevent Analysis of Market News & Information 3. Sound Technical Analysis for Short Term Trends 4. Special Reports such as… * Hedge Solutions: To offset Product Exposure...
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...Jean C. Rivera-Nazario CONT-6501 DR. Gonzalez Cerrud 10-mar-2015 THE HOME DEPOT, INC. 1. Evaluate The Home Depot's growth strategy. The Home Depot innovated in the home center industry by bringing a new retailing concept. One of the most important decision was to cut out completely the warehouse costs by designing retailing stores in a warehouse format in which all the inventory was already at store. This format helped The Home Depot to keep Overhead costs low and as a consequence, past these savings to their customers. This practice also led The Home Depot to work with a higher volume, lower margin and higher inventory turnover, a good indicator for retail companies which in turn helped to reduce costs even more. Having the warehouse format also helped them minimize out-of-stock occurrences, which helped them to have a stronger relationship with the customer, to whom they offered guaranteed products, by either the manufacturer or themselves. Customer service was so important for The Home Depot that 90% of their employees were fulltime works with special trainings of technical knowledge to help their customers with home improvement projects, and their advertising program included in-store demonstration of do-it-yourself which helped the Home Depot grow successfully in its early years. 2. How well did the company implement its strategy? Analyze The HomeDepot's financial performance and cash flow during the fiscal year 1985. How well did the company perform in...
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...Ducati feedback Q1. I wanted you to begin by recognising that this was a turnaround situation, with Ducati in 1996 close to bankruptcy. A new management team led by Minoli changed strategy with clear objectives of aggressive growth within a niche of the sports segment and competing as a focussed differentiator. The logic of the turnaround can be conceptualised as follows (a) Ducati reduced costs without affecting the WTP for the physical product (i.e. the quality and reliability of the product has increased despite reduced costs). Major reductions were in motorcycle material costs (from 68.2% to 59% of unit costs, exhibit 12) and can be attributed to the following factors: (1) rationalised suppliers from 200 to 130 with the effect of increasing the quality of suppliers and Ducati’s bargaining power (2)Ducati increased its outsourcing from 80% to 90% and thus tapped more the potential of the Emilian mechanical district (3) Ducati further increased its bargaining leverage by instituting dual sourcing for the major components of the motorcycle and adopted short-term contracts (4) Ducati enjoyed economies of scale by increasing output from 12000 bikes in 1996 to 39000 in 2000 (5) Ducati increased the standardisation of its products (parts) and thus increased the bikes produced per worker from 76 to 87 in 200 (14% increase) (exhibit 13). (b) Ducati increased costs to boost WTP for the product’s intangible aspects (i.e. sport character, community, design, exclusivity, Italianess...
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...Business Memo to The C.E.O of Nokia Date: November 25, 2015 To: Rajeev Suri, C.E.O From: Shreya Chugh, UOM Subject: Upper Echelons of Nokia Nokia is one of the leading companies in the sector of advanced technologies and mobile network with an advantage of 100 years of experience and expertise in telecommunications from 2G to 3G to 4G and now the emerging 5G. It has always been and intends to remain at the cutting edge of mobile technology. (Anon, 2015) Its market share was 48.7 percent in the third quarter of 2007. By the third quarter of 2012 the company's market share had slipped to just 3.5 percent (Statista, 2015). Nokia has shown great improvement ever since this decline. Coming in 3rd place, scraping what market share has been left behind from the dominant Android and iOS, it continues to be one of the largest operators in the market (Byron, 2013). This memo attempts to closely evaluate the reasons behind the decline of the market share and will primarily focus on the decision making by the upper echelons of the company that led to this decline. Its main aim is to provide possible interventions based on the upper echelons theory that could help the company regain its lost position and customer base. This memo will dive deep into the cognitive frames and the demographic characters of the CEO and the top management team (TMT) that affect the strategic decisions of a company, based on the theory. It will be imperative to do a quick historic evaluation of the...
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...Emami’s Net Sales & PAT to grow by 16.9% & 219.7% respectively over FY12-14. Growth momentum could continue in its power brands viz Boroplus, Navratna, Fair & Handsome & Zandu, led by higher A&P spends, distribution expansion and brand extensions. The management aims to grow each of its power brands to Rs 8-10 bn over the next 5 years. Strong R&D & aggressive marketing & distribution would continue to support portfolio expansion, like in the past. The company’s sub-segmentation strategy of launching variants and brand extensions has worked out well. Emami is a market leader in under penetrated segments like Fairness cream, Antiseptic cream and Cold cream market. Robust outlook of personal care market could prove to be beneficial for Emami going forward. Even the cooling oil market outlook is robust & hence Navratna Oil would do well. Rural India would be a major growth catalyst going forward. Emami expects its revenue share to go up further through focus on value for money products, increase in brand promotion (with the help of celebrities as brand ambassadors) & distribution and rise in rural household incomes. After a flattish growth in 9MFY13, the management expects the...
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...had been very successful. Bill Hawkins, the newly appointed Marketing Director, opened the meeting with an aggressive presentation. At 35, he was a good 20 years younger than anyone else on the Board; and with a Harvard M.B.A., he was the only member of the Board with formal management training. 'I hope that certain members of the Board have reconsidered their positions since our last meeting. As far as 1 am concerned, my recommendations of three weeks ago still stand. Let's go through them once again, shall we? What are the main facts from the Consultant's Report? Let's take them one by one, shall we? (a) At a £4.50 selling price per filter unit, and a market size of 1 million units, the present market size is £4.5 million. (b) One company, Western Ltd, has an estimated 85% market share. (c) The market does not like working under a monopoly, and especially as Western Ltd do not give volume discounts. (d) The number of buying points is estimated at 20,000, of which 220 in Birmingham, 150 in London, and 70 in Manchester, take 55% of the total. [pic] Figure 1: compressed air filter unit Filtereinsatz = Filterkern = core (e) There are 35 manufacturers of equipment powered by compressed air, who dominate...
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