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Your firm is in a high tech. area. The industry began about seven years ago with a lot of rapid growth in the early years. Consider the following information that your firm has gathered in your situational analysis for the 8th year. “Market potential” for the industry is estimated at $850 million; “current industry sales” at the end of the 7th year was $849 million; there are 4 firms competing in this industry; both market potential and industry sales have been declining at a steep rate of 20% per year for the past four years; your firm’s current company sales at the end of the 7th year was $510 million; unlike industry sales your firm’s sales have been declining by only 2% per year for the past four years; and your profits have been declining but for year seven you still posted profits of $75 million. (Week 2 lecture notes on market measurements)
Market share is often a very important marketing objective in certain industries. Given the data and situation above, (1) how important will it be for your firm to emphasize more competitive “selective” strategies vs. less competitive “primary” demand strategies? (2) Why? Be sure to use the market measures to help support your answer in part 1. (Week 2 lecture notes on Market Measurements)
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