Decrease In Market Share Research Articles

The impact of market competitors on the demand for reinsurance

PurposeAccording to the market competition theory, a firm’s decision-making is influenced by the behaviors or strategies of its competitors. The repercussions of competition include market-stealing and spillover effects. Relatively few studies in the reinsurance literature discuss the effect of competitors on an insurer’s decision-making. This study aims to fill a gap in the reinsurance literature by comparing insurers' reinsurance demand to their competitors' reinsurance purchases.Design/methodology/approachThis study uses unbalanced panel data for the US property-liability insurance industry from 2006 to 2017 to determine the impact of competitors' reinsurance purchases on insurers' reinsurance demand. This study employs the Mixed Effect Model and the Quantile Regression to test the proposed hypotheses.FindingsThe evidence suggests that the affiliated reinsurance purchases of competitors have a positive and substantial effect on the affiliated reinsurance demand of insurers, crediting mimicking the reinsurance strategy. Interestingly, the market-stealing effect is supported while the non-affiliated reinsurance metric is used. Remarkably, given insurers with low non-affiliated reinsurance purchases, the finding sustains the mimicking reinsurance strategy. Nevertheless, the market-stealing effect remains a concern for insurers with a high non-affiliated reinsurance purchase.Originality/valueThe new findings concerning competitor effects analysis fill a void in the reinsurance literature. Risk diversification, capital substitution, and real services demand may play a crucial role in determining the market-stealing effect, leading to a decrease in market share. Insurers can mitigate the market-stealing effect of competitors by accessing expertise and capital substitution through non-affiliated reinsurance purchases.

Implementation of Discrete Time Markov Chain Method to Estimate The Transition of Smartphone Brands Usage in Balikpapan

The increasingly rapid competition in the industrial world today encourages all companies to be able to compete by prioritizing the products they offer, one of which is smartphones. Indonesia is one of the countries with the largest smartphone market share in Asia, with the number of active smartphone users in Indonesia reaching 177 million people in 2021 according to data released by the Statista research institute in March 2022. With these conditions, many smartphone companies always follow the direction of development of sophisticated communication technology media and offer a variety of complete and attractive facilities to encourage people to buy these products. One method that can be used to model this uncertainty is Discrete Time Markov chain which can be implemented as a tool for decision making and predicting future events. Therefore, this study was conducted to know the shifting pattern of smartphone use by consumers and predict the shift in smartphone market share for the coming period. The results of the study found that the steady state or equilibrium condition was achieved in the 10th period or in 2032 with the steady state percentage of each brand, namely Samsung = 22.49%, Oppo = 20.82 %, Xiaomi = 17.01%, Realme = 11.54%, Vivo = 11.41%, Apple = 10.27%, and other brands = 6.46%. The increase in market share is predicted to occur in the Oppo, Realme, and Vivo brands, while the decrease in market share will occur in the Apple, Samsung, Xiaomi and other brands.

Why did the Malaysian Automobile Sector not Achieve their Described Look East Targets in 1981?

In the past decades, there was a growing demand in commodity vehicles that has contributed to the increase in market share of the automotive sector in many countries, including Japan and Korea. However, despite a lot of countries cherishing the significant sales in the automotive sector and also, Malaysia was not able to succeed. One example is Proton, which has failed with an immense decrease in market share and sales over the last two decades. The previous research has provided a dominant explanation for this failure as the lack of economies of scale, dependence at the home marketplace, technology development, Limited R&D, testing capabilities, compliance with worldwide standards, lack of professional workers, and poor linkages. I use the data from Tai and C.Y.Ku, Malaysian Investment Development Authority, Anazawa, and Ministry of International Trade and Industry to understand the organizational structure and industry performance. Similar to the previous findings, our findings indicated that the Malaysian automotive industry suffers from a lack of dynamics between state and private enterprises, a lack of scale efficiencies, and a reliance on domestic markets. Additionally, it made clear reference to the problems raised by Chang, Andreoni, and Rodrik. In contrast to Japan, where the automotive industry made a large contribution to the Gross domestic product, Malaysia's automotive industry, which includes companies like Proton, was unable to flourish and win the national championship.

Business Process Improvement and Capital Budgeting Analysis to Develop the Digitalization Process of Loan / Financing in Bank Sumsel Babel

PT Bank Pembangunan Daerah Sumatera Selatan dan Bangka Belitung (brand name: Bank Sumsel Babel) is one of the regional state-owned enterprises (SOEs) engaged in the banking sector. As a local company with a great purpose, Bank Sumsel Babel has a big responsibility to support all industries in the region province of South Sumatera and the Bangka Belitung Islands. This study examines the downward trends in credit and financing activity over the previous five years, particularly in working capital and investment credit at Babel Sumsel Babel branches. These two credits assess how successful regional banks are at boosting the local economy. On the other hand, the Bank has seen a decrease in market share in its multi-purpose credit products to civil servants in the South Sumatra and Bangka Belitung islands, where this credit is the primary source of income for Bank Sumsel Babel. This research utilizes qualitative information to determine the root cause and improve business processes by using the digital revolution of credit and financing to speed up the process and increase microfinance in Bank Sumsel Babel. Furthermore, the capital budgeting analysis to build the digitalization process will be calculated in this study to determine whether the investment is feasible. Based on the findings of this study, it is possible to conclude that Bank Sumsel Babel can use digitalization as a process improvement to secure its niche market and increase lending activities. Finally, this study makes recommendations for internal management on implementing the credit and lending digitalization process.

Economic Consequences of Expanding Sales Tax Nexus: Evidence from Stock Price Reactions to the Wayfair Decision

We analyze stock price reactions to the announcement of the United States Supreme Court decision in South Dakota v. Wayfair, Inc., Overstock.com, Inc., and Newegg, Inc. (hereafter Wayfair), which overturned over 25 years of judicial doctrine related to sales tax nexus. Wayfair's precedent provides a broadening of sales tax nexus and a significant increase in affected firms' compliance costs. Stock returns surrounding the Wayfair decision were, on average, negative, suggesting that investors were concerned about an increase in compliance costs and a decrease in market share. Cross-sectional analyses suggest that the negative reaction manifested primarily among firms operating in industries most affected by the decision and firms with fewer resources. Our results reveal an immediate consequence of the prospect of expanding sales tax nexus is a downward revision in firm valuations.

Development of the radio market in the Slovak Republic in the years 2016 to 2019

The paper is a part of a long-term research of the mass media market in the Slovak Republic under the conditions of globalization. The main objective of the research study is to analyse the development trends of the market of selected radios in the Slovak republic in the monitored period 2016-2019. The authors focus on the analysis of the development of listening and the volume of financial resources spent on advertising (number of spots, number of broadcast hours, value of advertising broadcasts) for selected radios with nationwide coverage. Among other things, the research showed a decrease in market share for all monitored radios and a decrease in listening for most of the monitored radios. The authors think that the above is because radio managements are not able to adapt sufficiently to the time that affects the listeners. From the above, the authors also warn the management of radio stations to increase the emphasis on development, the structure of broadcasting and to try to stop the clear decline in the development of radio.

Eat, but Verify: Low-Cost Portable Devices for Food Safety Analysis

Illness caused by adulterated and counterfeit foods is a very common health issue for consumers. Food fraud also affects manufacturers by damaging their reputation, resulting in a decrease in market share and consumer trust. Thus, food safety has emerged as a critical issue for consumers and manufacturers alike. Fraudulent food products are often the result of opportunities taken by willful offenders who mislabel, falsify, and/or adulterate for economic gains. In some cases, the contents of a packaged food item may not match its label. In other cases, the labeling may be correct while the product itself is counterfeit. Thus, in today's market where most food items are industrially packaged prior to sale, it is important to prioritize the consumers' right to authentic and safe food products. The solution to this challenge is not to use expensive security measures that increase the final price, but to develop economical and portable food safety, quality assurance, and authentication devices for use at all stages of a food product life cycle-from production to consumption. Such devices would be a game-changer in the field of food safety.

Does Part II of the PCAOB inspection report provide new information to the market?

PurposePart II of the Public Company Accounting Oversight Board (PCAOB) inspection report is released only when firms fail to remediate quality control criticisms and is intended to be a public signal of audit quality. The purpose of this paper is to reexamine whether audit clients react to the release of Part II of the PCAOB inspection report as a signal of audit quality.Design/methodology/approachThis study uses a difference-in-difference regression model to examine the association between the release of Part II of the PCAOB inspection report and an audit firm’s change in market share. A sensitivity analysis is also performed to determine whether the main findings are robust to the timing of the release of the report and type of quality control criticism included in Part II of the inspection report.FindingsAfter controlling for the prior year’s changes in market share, the authors find no evidence that clients react to the public release of Part II of the report. In the second part of the study, they examine when clients become aware of the contents of the Part II report prior to its release. Firms with audit performance criticisms experience a decrease in market share following the release of Part I. Firms with firm management criticisms experience a significant decrease in market share following the remediation period and before the public release of Part II.Practical implicationsThe results suggest that Part II of the PCAOB inspection report does not provide new information to the market. Clients appear to be aware of the information contained in Part II of the PCAOB inspection report prior to its release. The authors believe that the delay in releasing the Part II report may create an information imbalance, and the PCAOB may want to consider ways to improve the timeliness of the information.Originality/valueThis study questions the generalizability of prior research which finds that Part II of the inspection report provides new information that is valued by the public company audit market as a signal of audit quality. The findings provide new evidence that the contents of Part II and the firm’s ability to remediate the quality control concerns are known to audit clients prior to the public release.

The relative importance of quality costs in Jordanian pharmaceutical manufacturing sector and their deficiencies

The aim of study is to determine the relative importance of each of the elements of quality costs, classified to prevention costs, appraisal costs, internal failure costs, and external failure costs, and deficiencies related to these elements, in Jordanian pharmaceutical manufacturing sector. The sample was selected using simple random sampling with a sample size of 9 Jordanian pharmaceutical companies from population consisting of 24 companies at the end of 2015. A total of 50 questionnaires were distributed to quality and production managers in sample study; out of 50 questionnaires, only 40 were fit for analysis, one sample t-test was used to test the hypotheses of the study. The most important results of study were: awareness among the responses of study members about the importance of the elements of four dimensions of quality costs. The most deficiencies in the prevention cost elements related to failure of existing quality reference manual to match production specifications on continuous basis. And the most deficiencies in the appraisal cost elements involved in developing agreed standards for classifying products into good and defective or damaged according to the level of their quality. And showed the deficiencies in internal failure cost elements involved in estimating lost time costs on the rehabilitation products. And deficiencies in the external failure cost elements related to estimating costs of losing customers and decrease in market share because of customers’ dissatisfaction of product quality. Finally, the study recommended Jordanian pharmaceutical manufacturing management increased their attention to quality system planning costs on continuous and permanent basis.

An Information System for the Furniture Industry to Optimize the Cutting Process and the Waste Generated

Due to the current European economic stagnation and to face the increasing competition from emerging economies, significant changes in the European furniture industry need to be undertaken. Several institutions have produced reports showing that the European furniture industry must innovate the products, the production processes, the promotion strategies and the organizational structure in order to attain flexibility and productivity. The most relevant factor for the decrease in market share in the European furniture industry is the production cost, mainly due to labour and raw materials costs. The proposed information system aims to reduce the waste of raw materials generated in the production process, optimizing their purchase and consumption, boosting corporate profitability and sustainability.

The impact of the number of retail outlets on the market share of consumer goods' retail brands

The paper presents the research results of effects of retail brands of consumer goods on the market share they have in Serbia. In particular, the research includes the impact of the retail format on the growth or decrease in market share. The data were obtained from market retailing research of consumer goods on the Internet and the research carried out by the GFK agency. The study used a statistical method of data processing by the method of descriptive statistics. The survey showed that the Serbian retail market is still underdeveloped, and that the strongest impact on the market share of retail chain stores of consumer goods has the size of the retail network, as well as a strong dominance of traditional trade in comparison to organized one. The retail market in Serbia has a long period of consolidation forthcoming and also taking over such a status that organized trades or TOP 10 retail chains have already had in the most developed countries. The market share of TOP 10 retail chains in Serbia is now at the level slightly bigger than 30%, while those in developed market economies have a market share moving up to 75%.

Update on mobile applications in dermatology

As the use of mobile devices surpasses that of personal computers, medical applications increasingly provide easy access to a diverse range of health care resources. To analyze changes in the number of dermatologic mobile applications since 2012. We examined five mobile platforms (Apple, Android, Windows, Nokia, and Blackberry) for dermatology-related diagnoses applications. The apps were categorized by purpose, cost, and target audience. A total of 365 dermatologic mobile applications were analyzed with 225 new mobile applications found since 2012. Since the last query, there was a decrease in market share of reference materials (26.6% in 2012 to 15.9% in 2014) and self-surveillance/diagnosis applications (17.9% in 2012 to 12.9% in 2014) while teledermatology apps increased from 3.5% of total apps in 2012 to 9% in 2014. Dermatology apps continue to proliferate with minimal regulation. As technology continues to advance and physicians have greater access to mobile- health information, novel advancements in diagnosis may lead to more time-and-location-flexible patient care.

Analisis Proses Bisnis dan Penerapan Manajemen Strategis pada PT Optik XYZ

That optic business is increasingly mushrooming followed by a decrease in market share, forces Optik XYZ to have competent management strategies to achieve a strong position in competing in similar industry. Therefore a study was conducted to provide a structured and systematic analysis of management strategies required by Optik XYZ. Stages of study were initiated by data collection from interviews, literature studies and field studies, followed by qualitative and quantitative analysis and implementation of management strategies. The study generated a formulation of management strategy proper for Optik XYZ. Management strategies formulated in this study can help carrying out the company's activities in decision making, so that the business processes run optimally.

Start spreading the news: A structural estimate of the effects of New York hospital report cards

Research on the effects of publicly reported hospital quality report cards on patient market shares is mixed. Higher-ranking hospitals do not consistently experience increases in market share. We argue that this may be because the report cards do not always convey “news” about quality; in some cases the rankings conform with prior beliefs about quality. We develop a structural model of the “news” in report cards and estimate the model using data from New York State in 1989–1991. We show hospitals with negative news in the original 1990 report cards experienced a decrease in market share, but that a misspecified model might continue to find no report card effect.

Rebate Contracts: Risks and Chances in the German Generic Market

This paper provides an overview on the current developments in the German healthcare market. Rebate contracts between pharmaceutical companies and statutory health insurers (SHIs) have proven to be an effective cost containment measure. Increased price pressure in the generic market has led to significant changes in market shares within months. While international companies with broad product portfolios successfully used this instrument to enter the German market, small- and medium-sized enterprises with a narrow product spectrum often saw a decrease in market share. Moreover, the instrument of rebate contracts replaces early entry strategies and might increase profits via portfolio contracts. An overview is given on the new legislation with respect to prescribers and pharmacists together with a look at the framework of public procurement law. Strategic options for generic companies are presented in the context of this legal framework. In addition, considerations that pharmaceutical companies should take into account before negotiating rebate contracts with SHIs are highlighted.

Inter-organisational Co-operation In Improving Access To Activity Centres By Public Transport

This paper addressed the complexity of inter-organizational cooperation in respect to improving accessibility to special activity areas, focusing on public transport services. It recognizes the awareness of location owners of city centers, parks and public entertainment facilities such as amusement centers of the problems of local access by car or public transport and fear a lower attractiveness and a decrease in market share. The paper discusses the interest of the location owners to take responsibility and help to realize innovative concepts for accessibility and consider using these innovative concepts as a part of their marketing strategy.

Public transport strikes and traveller behaviour

In many countries strikes hit the public transport sector from time to time. Public transport strikes are important for transportation research because they can impact upon the perceived reliability of public transport services. Moreover, the traveller's most preferred alternative is removed from the choice set. The traveller is forced to make up his mind about his preferences; doing so may induce a shift from inert, habit-driven behaviour to rational behaviour. In this paper we review 13 studies of strikes in the public transport sector, discuss criteria that determine the kind and size of the effects of a public transport strike, and present the results of a survey carried out after a short, unannounced railway strike in the Netherlands. Our survey confirms the results of other studies. In the short-term mainly captive travellers are affected; these are mostly commuters without alternative modes of transport who are highly inflexible in their departure or arrival times. As a result, on average 10–20% of the trips are cancelled. Most travellers switch to the car (either as driver or passenger) and as a result road congestion increases. Longer-term effects include a decrease in market share for public transport, which various studies estimate to be between 0.3 and 2.5%. The effect of a strike on public transport rider-ship can be temporary or permanent, depending on the type of strike and the policy response to it.

Market Response to a Major Policy Change in the Marketing Mix: Learning from Procter & Gamble's Value Pricing Strategy

Much research has focused on how consumers and competitors respond to short-term changes in advertising and promotion. In contrast, the authors use Procter & Gamble's (P&G's) value pricing strategy as an opportunity to study consumer and competitor response to a major, sustained change in marketing-mix strategy. They compile data across 24 categories in which P&G has a significant market share, covering the period from 1990 to 1996, during which P&G instituted major cuts in deals and coupons and substantial increases in advertising. The authors estimate an econometric model to trace how consumers and competitors react to such changes. For the average brand, the authors find that deals and coupons increase market penetration and surprisingly have little impact on customer retention as measured by share-of-category requirements and category usage. For the average brand, advertising works primarily by increasing penetration, but its effect is weaker than that of promotion. The authors find that competitor response is related to how strongly the competitor's market share is affected by the change in marketing mix and the competitor's own response and to structural factors such as market share position and multi-market contact. The net impact of these consumer and competitor responses is a decrease in market share for the company that institutes sustained decreases in promotion coupled with increases in advertising.