explain why maintaining market share might not be a suitable

explain why maintaining market share might not be a suitable objective for a business

Solution

Maintaining a market share is obviously the main factor for the success of a business but it then depends on what kind of a motive the business is subjected into:

Why do customers stop buying your product or service?

1. You may have answered their need quite satisfactorily, and exhausted further need.

2. You may have failed to solve their challenge to their satisfaction.

3. Or, a competitor may have converted your customer to theirs, by finding a new need, solving the current challenge better, or making it easier to do business with them (by providing incentives or removing barriers).

In order to have a perfect business there should be a considerable market share with respect to your product. THe situations when maintaing a market share might not be a suitable objective for your business are as follows:

References:

http://www.bizjournals.com/phoenix/stories/1997/08/18/smallb2.html

http://www.wikinvest.com/stock/SunTrust_Banks_(STI)/Maintaining_Increasing_Market_Share_Depends_Acceptance_Regulatory_Approval