Market share - a yardstick to measure business performance.doc

 PAGE \* MERGEFORMAT 9 Market share - a yardstick to measure business performance Today, the enterprise should the product’s market share as a comprehensive measure of business performance indicators, as the Japanese god of business, Mr. Matsushita said: ‘measure of a good or bad business standards, mainly to see an increase in sales revenue and market increased level of market share ‘. Changes in market share, not only reflects the vitality of the enterprise product, but also reflects how the company’s image in the minds of consumers. Little Swan Company Limited has proved over the years: the operators if they do not study the market share, is the business decision-making mistakes in the beginning. First, enhance the significance of market share We know that only when large-scale enterprises can mass production, the cost can be reduced. Take the automatic washing machine is concerned, because of its significant liquidity of production inputs, inputs 3-5 million yuan a year in order to achieve an annual output of 80000 sets the number of preservation (and should all sell out), or certain losses, If coupled with higher raw material costs, losses will be higher. Living in the market share of other brands of the first branded product, its price will tend to produce similar products in the inevitable impact. In general, living in second place below the price of the brand the largest market share only in the light of the brand price, take identical type or lower pricing strategy, or is likely to sell or not sell very little, particularly in the country’s economic a lower growth rate, there could be more serious. On the contrary, the market price or less the same conditions, as the market share of companies with high yield, low cost, profits on sales of its products must be the highest; the same time, market share, so that enterprises can use the funds (tax After the net profit and equipment depreciation, etc.) are more generous with the industry, companies use t