Made’s Blog

My company learned something. Its ambition to be #1 in 1000 days has been revised. My company realizes that being number 1 is easy, but being #1 with a good foundation is tough. In this context, being #1 means getting the biggest market share.
A public company’s responsibility is clear, to give good numbers to its stockholders. Those people which have the share in the company care with their investment. These are their questions, “How much dividend will I get at the end of the year?”, “How can I get a higher return in the short term?”, “How much is the stock price now?”. The statements are not about, “It’s okay that I lose money as long as this company is #1 in terms of market share.”

Well, I can say that it’s easy to gain market share. Sell your product cheaper than everyone else. But it simply doesn’t work for a long period. One thing being sacrificed, though, is: Profit Margin. Big increase in expenditure, high sales volume, but small increase in profit…, it gives an impression that the company is not healthy… and people start screaming. Tighten the budget. Streamline the process. Shorten the time to change concepts to real products.
So it’s now focusing on something else. Build the brand. Push cost. And high ASP.

Hope it works.

This entry was posted on Friday, March 16th, 2007 at 1:04 am and is filed under Economics. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.