Abstract
Abstract The profit impact of market strategy program began in 1970 as a formal attempt to discover what return on investment might follow from given market structures if certain strategies were followed. Thus began an unprecedented and unrivaled series of studies (over 108 by 2004). It fed academic research for over two decades and established some fundamental generalizations about the main influences on profitability such as market share and product quality. However, there have been varied and substantial criticisms over time. These have focused primarily on the market share–profitability link where the contemporaneous publication of the Boston Consulting Group BCG growth–share matrix advocated aggressive building of market share.
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