Page 10 - Portfolio Analysis

products or services, customer types, and geographic areas that are directly relatated to the activities of the company. For example it includes all products and services that are competitive with those sold by the company. However, a measure of market share, per se, is not a good indicator of the extent to which a firm dominates its market. The value of a 30% share is very different in a market where the next largest competitor has 40% than in one where the next largest has only 20% (See figure 5). FIGURE 5 MARKET SHARE 100 70 50 40% 30% 30 20 10 20% 30% 0 Two alternative measures which incorporate information on the market structure: a) Company share ---------------- share of largest competitor 30