One age-old debate in the matters of business is the argument between market share and profit share. Should you be “patient for growth but impatient for profit,” as told by Clayton Christensen in his book The Innovator’s Solution: Creating and Sustaining Successful Growth? Or is the slow and steady game in brand awareness essential to converting customers for a larger market share?
The arguments are that:
- Market share matters more because it pushes competition out of the market
- Profit share matters more because profit drives the business altogether
The truth is that the best focus for business is a careful balance of the two and that objectives in an organization are usually too broad to not choose more than one marketing tactic anyway. A focus on the value you provide to consumers instead can drive competitors out of the market, starve them for capital, position you at top of the mind for your consumers, and ultimately drive innovation towards your goals.