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Supply Chain Excellence
Published in James William Martin, Operational Excellence, 2021
Key marketing team activities include the introduction of new products, expansion of current markets, or development of new markets and customers. It is very important that marketing use statistically based market research tools and methods to develop forecasts for new products. These are inputs to an organization's sales plan and directly impact its supply chain. New product forecasts should be very carefully built by marketing and evaluated by the S&OP team. Miscalculations can significantly increase E&O inventory investment. Some organizations assign the cost of the E&O inventory to marketing's budget as an effective way to ensure marketing is held accountable. New product forecast accuracy is especially important for industries in which new products are the basis for an organization's revenue growth and profit. As an example, in high technology industries, the first company to get to market with a product or service often obtains a sizable market share and maintains this market share even after competitors later enter the same market. Marketing also impacts the degree of design obsolescence as it changes product packaging and other features of products and services. If the changes are not properly phased into a supply chain, through the S&OP team, the result may be that products or services become obsolete more quickly.
The Marketing Plan
Published in David C. Kimball, Robert N. Lussier, Entrepreneurship Skills for New Ventures, 2020
David C. Kimball, Robert N. Lussier
Market share. Market shareis the percentage of the total sales held by each competitor. Many industry and trade associations publish market share information. If total sales per year for your products are 100,000, and you estimate that you can get a 2% market share, what is your projected sales forecast? The answer is 2,000 units.
Analyzing and Interpreting Measures
Published in Will Kaydos, Operational Performance Measurement, 2020
Market share is a key indicator of the effectiveness of a company’s strategy and competitive position. Market share can be increased in the short term by decreasing prices, but in the longer term, that is not possible unless a company has a cost advantage relative to the value of its products. The size of a company’s market share is important, but in many respects, the most significant aspect of market share is whether it is increasing or decreasing. If it is increasing, it says the company has a competitive advantage in the marketplace. If decreasing, the opposite is true and prompt action is needed to prevent further erosion. Had General Motors, Ford, and Chrysler heeded the signals sent by their small losses of market share in the early 1960s, how different their fortunes might be today! The same is true of the U.S. commercial electronics industry, which has essentially disappeared.
An innovative decision-making framework for evaluating transportation service providers based on sustainable criteria
Published in International Journal of Production Research, 2020
Ananna Paul, Md. Abdul Moktadir, Sanjoy Kumar Paul
The cost of the service includes cost for transporting materials such as cost per kilometre, cost for hiring and fixed costs (Menon, McGinnis, and Ackerman 1998; Jharkharia and Shankar 2007; Liu and Wang 2009; Falsini, Fondi, and Schiraldi 2012; Hsu, Liou, and Chuang 2013; Aguezzoul 2014). Financial performance is measured in terms of revenues, expenses, profit or loss, assets, liabilities, cash flows and equity (Göl and Çatay 2007; Jharkharia and Shankar 2007; Liu and Wang 2009; Aguezzoul 2014; Zailani et al. 2017). Experience in the same industry refers to the number of years of experience as a transportation service provider (Bottani and Rizzi 2006; Göl and Çatay 2007; Tsai, Wen, and Chen 2007; Liu and Wang 2009). Market share of the company is the portion of a market controlled by a particular service provider (Jharkharia and Shankar 2007; Liu and Wang 2009).
Mathematical model of policy holder switching within the life insurance market
Published in International Journal of Management Science and Engineering Management, 2018
Farnaz Haider, Mhd Shamsuzzama
In order to expand and survive in the market, it is necessary to cope from extensive completion among firms. Smaller firms that exist within the market are more likely to lose market share compared with larger firms, because larger firms try to capture the market share of smaller firms (Schweickart, 2010). Porter’s five-forces model (Porter, 1979) explained that there are five basic factors that determine the extent of completion in an industry, among which rivalry between firms is one important factor. Rivalry between firms means that, due to huge competition between firms, they struggle to capture each other’s market share; hence, the market share of firms is likely to slow down. If there are large number of firms in the market, then the growth of firms decreases as well as the entry of new firms being difficult (Haveman & Nonnemaker, 2000).
Business model selection for durable products based on price optimisation with a two-dimensional description of customers’ usage patterns
Published in International Journal of Production Research, 2023
Tianzhu Ye, Liping Zhou, Shan Jiang, Zhibin Jiang
From the proof process of Lemma 1 and the expression of , we can see that in the pure sales model, firms will lose part of the market immediately if they raise the selling price of products. Therefore, it is important for firms to weigh up the objectives of profit and market share they are pursuing at different stages when setting prices. If pricing is too high, although it may lead to a certain increase in profit, it may significantly reduce market share. In addition, the inherent parameters of a product affect market share by influencing the optimal price. These parameters are usually determined at the product design stage, so product design is very important for market share.