Non-Financial Metric #4: Market Share

“Failure to gain market share even with superior costs is failure to compete. This failure is also a failure to achieve even lower costs.” Bruce D. Henderson

There is substantial evidence which states that market share is directly related to ROI. With an increase in market share, a business can expect to benefit from economies of scale that ultimately lead to better operating margins. Therefore a business becomes stronger by gaining market influencing powers and equipping itself with quality management teams. Keeping track of market share is an important indicator in evaluating how business stacks up against the competition and how it progresses over time. In the early stages of starting out, a venture market research is a critical component of developing a business plan. This is usually a challenging exercise, because information regarding industries and markets is often not readily available. Listed below are some steps I use to evaluate the market and set market share targets accordingly:

1. The Industry: One needs complete information regarding growth rates of a particular industry. What are it

Tagged as: balanced scorecard, Business, chrome, compensation, critical, customer, customer acquisition, customer satisfaction, dashboard view, development, disclosure, economies of scale, Entrepreneur, fairness, financial, focus groups, gmail, google, grind, growth, industry, innovating, innovation, internal business processes, kaplan, learning, market factors, market share, metrics, non financial, norton, observation, open communication, profitability, revenue, reward, surveys, Technology 4 quadran, Technology, touch points, trust