Market Share Strategy and the Product Life Cycle

POSSESSION of 1% market share in the light-duty liquid detergent market is not necessarily a promising competitive posture. In such a mature and highly competitive market, it is questionable that such a small market share can ever yield a satisfactory profit. The attractiveness of a market share position varies according to the structure of the market and the nature of competition. Sometimes a decision to invest in market that is, to increase market share, may be extremely valuable in the long run. In other cases, the most sensible solution may well be to disinvest, that is, to reduce market share with the short-term goal of increasing unit profit enough to offset the unit volume decrease. Market share investment or disinvest-