Greatest Hits Vol. 1

company’s performance should be judged against the average performance of all companies is not always valid. • If a new firm enters the industry, then every existing firms market share might fall. Share loss depends on the degree to which the new firm hits the company’s specific markets. • Sometimes a market share decline is deliberately engineered to improve profits. E.g management may drop unprofitable customers or products to improve its profits. • Market share can fluctuate for many…

Unfortunately, some companies have mismanaged their greatest asset—their brands. This is what befell the popular Snapple brand almost as soon as Quaker Oats bought the beverage marketer for $1.7 billion in 1994. Snapple had become a hit through powerful grassroots marketing and distribution through small outlets and convenience stores. Analysts said that because Quaker did not understand the brand’s appeal, it made the mistake of changing the ads and the distribution. Snapple lost so much…