There are three keys to long term success in maturing markets. Market share, market share and market share. This axiom is as old as the study of economics. Sidney Shoeffler at General Electric kicked of the Profit Impact of Marketing Strategy (PIMS) studies in the 1960’s, subject of very good read by Tom Peters and Nancy Austin. The extensive study was carried out through 1983, the year I was made a Vice President of GE, and had a profound impact on the strategic thinking of that company and its enormous success under newly elected CEO Jack Welch, one the great industrial leaders of the past century in my opinion.
While the study identified many variables as contributing to success, the key variable was a strong market position in most cases. High market share had benefits in brand strength; economies of scale in manufacturing; efficient distribution; greater capital efficiencies and the
