Manage for Profit, Not for Market Share

Manage for Profit, Not for Market Share


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Manage for Profit, Not for Market Share by Hermann Simon, Frank F. Bilstein, Frank Luby

How do companies in mature markets—where savings from cost-cutting have been exhausted and breakthrough innovations are hard to come by—achieve sustainable increases in profits? For decades, managers have been told the answer lies in pursuing high market share. But Hermann Simon, Frank F. Bilstein, and Frank Luby argue that this misguided advice has destroyed, rather than created, an additional profit potential.

In Manage for Profit, Not for Share, the authors contend that companies can extract a profit potential of 1%-3 % of revenue by pursuing a profit, rather than a market share, orientation. Based on their extensive consulting work, the authors lay out a practical, proven program for making significantly more money by reconfiguring the marketing mix to sell existing products and services in different ways. The book offers practical strategies managers can use to differentiate mature products, raise prices effectively, time promotional activities properly, better understand consumer preferences, and more.

A convincing counterargument to the reigning market share dogma, this book outlines the new mind-set and tools managers will need to bring their companies closer to peak profit performance.

Product Details

ISBN-13: 9781591395263
Publisher: Harvard Business Review Press
Publication date: 04/24/2006
Pages: 232
Product dimensions: 6.60(w) x 9.60(h) x (d)

About the Author

Hermann Simon is founder and Chairman of Simon-Kucher & Partners Strategy and Marketing Consultants (SKP), in Germany. Frank F. Bilstein and Frank Luby are Partners in SKP's Boston office.

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