Low Market Share Research Articles

Unlatching or latching a door to the competitor

PurposeIn responding to competitors' strategic choices, firms must choose whether to allocate their customer relationship management (CRM) resources primarily to retaining existing customers or to acquiring new customers. To address this critical but understudied question, the authors examine the strategic choices of two competing firms between retention- and acquisition-focused strategies in consideration of switching costs, technological advancement level, and market share.Design/methodology/approachThe authors develop and analyze a game-theoretic model to investigate the strategic choices of two competing firms between retention- and acquisition-focused strategies.FindingsWhen switching costs are high, findings show that when the degree of technological advancement is high (low), both firms should employ acquisition-focused (retention-focused) strategies to maximize their profits. When switching costs are low and there are a low degree of technological advancement and asymmetric market shares, the firms choose retention-focused strategies in equilibrium, but only the firm with the higher market share can maximize its profit. When switching costs are low, technological advancement levels are high, and the market shares are asymmetric, the firm with the higher market share chooses a retention-focused CRM strategy, while the rival with lower market share adopts an acquisition-focused strategy in equilibrium. However, neither firm can maximize its profits.Originality/valuePrior research focused on a single firm's price discrimination decision without considering a competitor's strategic choice. To address this research gap, the authors examine where firms should assign their CRM resources (retention vs. acquisition) in response to a competitor's CRM strategy. This study provides guidance for optimal decision-making regarding a firm's CRM resource allocation in a duopoly market.

Pricing forward contracts in power markets with variable renewable energy sources

With the ongoing increase of variable renewable energy sources (VRES), such as wind or solar power, weather dependent production profiles induce uncertainty on the supply side and change operations at large in wholesale power markets. In this paper, we study how an increasing market share of VRES affects spot power price dynamics and the forward price premium. Using data from simulated power markets, we analyse the forward premium in three identical power markets with a varying market share of VRES supplied to the system. We demonstrate that markets with a high share of supply from VRES yield a significantly lower forward premium than markets with a low market share of wind or solar supply. Our results further confirm that, regardless of the market share of supply from VRES, forward power prices contain information about future spot power prices. These insights generate important implications for producers, retailers and other market participants exposed to wholesale price risk.

Product market fluidity and religious constraints: evidence from the US market

AbstractWe use a sample of 5,863 US firms to investigate how religious constraints affect the product market fluidity for Shariah compliant (SC) firms. The study is important as Islamic asset management is emerging as an alternative investment class. We find that SC firms are less exposed to product market threats in relation to Shariah non‐compliant (SNC) firms. They are more competitive in the case of less concentrated markets, lower market share, equity multiplier, market/book assets ratio, experience lower asset growth, and spend little on research and development. Their competitive position is strengthened when their return on assets, sales and retained earnings are lower.

Optimal ordering decision and information leakage preference under asymmetric forecast signal

This work investigates the retailers’ sourcing decisions with or without information leakage and studies the impact of the forecasting accuracy on supply chain members’ preferences for information leakage. To derive the retailers’ optimal sourcing quantities under two scenarios, one without and one with information leakage, we formulate a supply chain in which a common manufacturer offers a wholesale price contract to two competing retailers, one of whom (the incumbent) has private forecasting information about the market demand and the other one (the entrant) does not. We find that the incumbent with information advantage may have a worse profit and lower market share than the entrant under no information leakage. We show that the incumbent has an incentive to impact the entrant’s sourcing decision by managing her own sourcing quantity reflecting private forecasting information under information leakage. Then, we compare the supply chain members’ performances under different conditions; counterintuitively, the result shows that information leakage may benefit the manufacturer when the prior probability of the booming market is low enough or the forecasting signal is not sufficiently accurate even if the incumbent’s forecasts that the market will be slack; we show that the information leakage will benefit the incumbent when the forecasting information is not sufficiently accurate and the prior probability of the booming market is high enough even if she forecasts that the market will be booming; we find that information leakage will hurt the entrant’s profit when the incumbent forecasts that the market will be slack, or when the market will be booming under the condition of the forecasting information is not sufficiently accurate and the prior probability of the booming market is high enough. Meanwhile, we find that the many-win condition will never occur in our model setting, and the preferences of all three supply chain members for information leakage will never become concert.

Dynamic System Analysis of R&D Based on Localization Capabilities in the Commercial Auto Industry

According to published reports on the level of internalization of commercial vehicles, it shows that most carmakers pursue a minimal domestic manufacturing policy and less have a policy of increasing domestic manufacturing on their agenda. The most important research gaps are need to study R&D activities in the form of a dynamic system in the automotive industry based on the three variables of supply network capabilities, product innovation and process. The purpose of this study is to provide a dynamic model to investigate the behavior of a commercial vehicle R&D system. The present study is applied in terms of purpose. The basis of the system analysis is previous research as well as information obtained from interviews with automotive industry experts. For this purpose, first the variables affecting the cycle of R&D activities are studied and modeling is presented using the dynamics approach. Also, various policies on the performance of the development research cycle based on the time of knowledge acquisition and product introduction have been simulated and analyzed. The results of system performance simulation show that the weak share of research and development budget along with low and limited market share and lack of proper investment makes the research and development capability at an unfavorable level during the next 10 years. Therefore, it is suggested that the necessary measures in this regard be taken in the fields of product sales marketing along with appropriate investment in research and development.

Research on the Problems and Countermeasures of Tourism Shopping in Heilongjiang Province

Shopping plays an important role in tourism. However, the development speed of tourism shopping in Heilongjiang province is slow, and there are still many problems, such as scattered shops and small scale; cannot meet the needs of tourists; low market share, restricts the development of Heilongjiang's tourism industry. Therefore, it is necessary to give full play to the leading role of the government, attach great importance to tourism shopping, increase the proportion of lifestyle tourism souvenirs, explore the cultural attributes of tourism souvenirs, and so on, to promote the overall development of tourism economy in Heilongjiang Province.

Peningkatan Market Share Bank Syariah Melalui Kinerja Keuangan; Antara Moderasi Efisiensi Dan Risk-Taking Behavior

<p><em>Conducting analysis of efficiency, risk-taking behavior and market share of </em><em>Islamic</em><em> Banking in Indonesia. Conducted to answer the question of the still low market share of sharia banking in the national banking industry. The presence of Sharia Banking on dual banking system is still minimal.</em><em> </em><em>The monthly data sample of 34 Shariah Bank in Indonesia (11 Sharia Commercial Banks, 13 Sharia Business Units) is used to test the research hypothesis for the period from 2014 to 2017 using the estimator Generalized Method of Moments.</em><em> </em><em>The results show that there is a significant relationship and / or influence between the efficiency, risk-taking behavior and market share of Sharia Banking in Indonesia. Effect of moderation Efficiency and Risk-Taker Behavior on Financial Performance of Sharia Banking.</em><em> </em><em>Research limitations/ implications - Firstly, this paper focuses only on the sharia banking industry in Indonesia that adopts pro-active models, and therefore, expanding the investigation to include countries adopting different models may provide a better and more comprehensive view of the correlation between efficiency, risk-taking behavior and market share of Sharia Banking. Secondly, there is a need for more empirical data to be used, such as 7 years or more.</em><em> </em><em>This paper provides empirical evidence to regulators and policymakers in Indonesia, to understand how to increase the market share of sharia banking to the national banking industry. Furthermore, the sharia banking shareholder intends to increase the market share of sharia banking as one of the pillars of sharia finance in Indonesia which continues to grow.</em><em> </em><em>Previous studies have only discussed financial performance, efficiency and risk-taker behaviors without linking to market share levels. Because the discussion of market share is usually monopolized marketing studies..</em></p>

Analisis Market Share Perbankan Syariah di Indonesia

The majority of Indonesia's population is Muslim. Ideally, the development of Islamic banking in Indonesia runs significantly, but the facts show that the market share of Islamic banks is still relatively small. This article aims to analyze the market share of Islamic banking in Indonesia. This study uses a descriptive quantitative approach. The data collection method used is the non-communication method, namely in the form of observation, literature review and experimentation through secondary data. Based on the results of the analysis and discussion, it shows that the market share of Islamic banking in Indonesia is still relatively low. The factors causing the low market share of Islamic banks and the improvement strategy are focused on three sides: Islamic banks' internal elements, aspects of government, regulators, and characteristics of society. In the future, there is a need for strategic steps from all parties to increase the market share of Islamic Banking in Indonesia.

Predicting Future of Senior Housing Markets amid COVID-19 Pandemic in India Using Dependency Models

The COVID-19 pandemic has contributed to a very high percentage of senior deaths in India. Senior citizens constitute about 10% of total population while 73% of deaths during COVID-19 pandemic in India have been of people with co-morbidities such as diabetes, hypertension, heart and respiratory diseases. Amidst this pandemic, the senior housing market is poised for exponential growth despite a low market share as well as slow sales. To inquire as to which factors influence the seniors for not buying into exclusive senior housing communities and whether the decision varies among ages as well as genders; a questionnaire survey was conducted pre-COVID-19 using sales leads of 143 senior respondents from five cities; Delhi, Lavasa, Chennai, Pune and Ahmedabad. These data were tested using binary probit regression models for age and gender. The survey required the respondents to rate decision factors which included; amenities, location, social isolation, wealth, family, urban connect, new relationships, inheritance and moral values - on Likert scale of 1 to 9. The tested model for gender shows that males are dependent on factors of location of the project and fear isolation as compared to females. Males also rated new acquaintances as a discouraging factor as compared to females. The age model shows that older seniors (aged 66-75) do not wish to move to an exclusive senior citizen homes due to factors of distance, fear of social isolation and attachment to urban elements as compared to younger seniors (aged 55-65). An attempt is made to use the results arising from these models to predict the future of senior housing market post-COVID-19 pandemic in India. By integrating new factors such as social distancing, personal hygiene and recreational activities, the existing models can be used to forecast post-COVID-19 senior housing markets in India.

Strategic management in local hospital markets: service duplication or service differentiation

BackgroundThe purpose of this study is to assess the influences of market structure on hospitals’ strategic decision to duplicate or differentiate services and to assess the relationship of duplication and differentiation to hospital performance. This study is different from previous research because it examines how a hospital decides which services to be duplicated or differentiated in a dyadic relationship embedded in a complex competitive network.MethodsWe use Linear Structural Equations (LISREL) to simultaneously estimate the relationships among market structure, duplicated and differentiated services, and performance. All non-federal, general acute hospitals in urban counties in the United States with more than one hospital are included in the sample (n = 1726). Forty-two high-tech services are selected for the study. Data are compiled from the American Hospital Association Annual Survey of Hospitals, Area Resource File, and CMS cost report files. State data from HealthLeaders-InterStudy for 2015 are also used.ResultsThe findings provide support that hospitals duplicate and differentiate services relative to rivals in a local market. Size asymmetry between hospitals is related to both service duplication (negatively) and service differentiation (positively). With greater size asymmetry, a hospital utilizes its valuable resources for its own advantage to thwart competition from rivals by differentiating more high-tech services and reducing service duplication. Geographic distance is positively related to service duplication, with duplication increasing as distance between hospitals increases. Market competition is associated with lower service duplication. Both service differentiation and service duplication are associated with lower market share, higher costs, and lower profits.ConclusionsThe findings underscore the role of market structure as a check and balance on the provision of high-tech services. Hospital management should consider cutting back some services that are oversupplied and/or unprofitable and analyze the supply and demand in the market to avoid overdoing both service duplication and service differentiation.

Prediction of international Chinese liquor market based on convolution neural network

In view of the low market share of Chinese liquor in the international market, domestic liquor export strategies are mostly analyzed from the qualitative aspect, while the reasonable quantitative mathematical model is seldom studied. In this paper, the Convolutional Neural Network (CNN) was used to analyze the current development of Chinese liquor export market by establishing the nonlinear relation model between liquor export amount and various influencing factors, so as to forecast the future market export volume and provide quantitative reference for the development of Chinese liquor export industry.

Assessing the progress of exports diversification in Saudi Arabia: growth-share matrix approach

High dependence on a particular category of exports results in fluctuations in income as the price of the export item fluctuates. In Saudi Arabia, a single category of mineral exports forms over 78% of the total exports, exposing the country to revenue volatility. The study aims to assess the magnitude of diversification of the export basket for the country. It uses data from 1984 to 2018 to study the importance of non-mineral exports in total exports. It applies Granger causality, variance decomposition, and impulse response function in the vector autoregressive framework. The study also uses the growth-share matrix to evaluate individual items of non-mineral exports. The results show a long-run relationship with a 1% increase in non-mineral exports, leading to a 0.30% increase in total exports. Non-mineral exports Granger-cause total exports. In the long run, non-mineral exports have a share of 64% of the forecast error variance in total exports. Moreover, a 1% shock in non-mineral exports creates a huge initial impact on total exports. Also, the growth rate of non-mineral products is higher than mineral products. The results indicate the importance of non-mineral exports for a predominantly oil-exporting country. Finally, the study attempts to classify its non-mineral export categories based on growth rates and market shares. Targeted emphasis on export category with a strong growth rate and low market share can be an effective strategy for further export diversification.

Collaboration Model for Service Clustering in Last-Mile Delivery

As e-commerce is rapidly expanding, efficient and competitive product delivery system to the final customer is highly required. Recently, the emergence of a smart platform is leading the transformation of distribution, performance, and quality in express delivery services, especially in the last-mile delivery. The business to consumer (B2C) through smart platforms such as Amazon in America and Coupang in Korea utilizes the differentiated delivery rates to increase the market share. In contrast, the small and medium-sized express delivery companies with low market share are trying hard to expand their market share. In order to fulfill all customer needs, collaboration is needed. This study aims to construct a collaboration model to maximize the net profit by considering the market density of each company. A Baduk board game is used to derive the last-mile delivery time function of market density. All companies in collaboration have to specialize the delivery items into certain service clustering types, which consist of regular, big sized/weighted, and cold items. The multi-objective programming model is developed based on max-sum and max-min criteria. The Shapley value and nucleolus approaches are applied to find the profit allocation. Finally, the applicability of the proposed collaboration model is shown through a numerical example.

Product Elimination in German Industrial Companies: A Comparison Study with US and UK Industrial Companies

This paper focuses on the product elimination in German industrial companies, especially in the mechanical engineering sector. The Product Life Cycle (PLC) theory is based on the typical curve, which shows the different stages a product experiences over the time. The last stage, the so-called decline or elimination phase, is characterized with decreasing sales figures, low market share and shrinking profits. Therefore, it sounds logical that such products should be eliminated. This study is analyzing if these indicators really are the only reasons to start the elimination process of a product, or if there are other reasons triggering this decision too. This paper is based on results of personal structured interviews (n = 102) with representatives of German mechanical engineering companies. The data was processed with use of statistical software SPSS, mean values and standard deviations were calculated, and Spearman's rank order correlation value analysis was applied. The results of this study were then compared with other earlier studies: Avlonitis (1984), Hart (1988), and Mitchell et al. (1998). The main findings suggest that the data from the new German study are highly correlating with the data from the United States (Mitchell et al., 1998) and the United Kingdom (Avlonitis, 1984; Hart, 1988). The results show that the reasons to phase out a product have not changed over the time; neither are the reasons different in different economics.

Keputusan Penggunaan Jasa Perbankan Syariah: Perspektif Nasabah Milenial

This study aims to identify the party and the dominant aspects that influence millennial customers in using Islamic banking services and provide relevant recommendations. The research problem is because the role of Islamic banking has not been optimal in the national economy due to the low market share and small number of deposits. This is due to the low scale of the Islamic banking industry. Market share growth is also influenced by the growth in the number of Third Party Funds. To increase customer users, Islamic banks should innovate in knowing the needs, desires, tastes and behavior of customers so that they trust and be a loyal customers. One of the user segmentation is millennial society so this object research is millennial customer respondents. The research method is descriptive analysis, factor analysis and mean analysis. The results of study found that those who influence millennial customers in using Islamic banking services are majority on their own initiative. The dominant aspect that affects millennial customers in using Islamic banking services is the perception of reputation and the availability of networks and technology. The sub-aspect of the dominant perception of reputation is religious reputation or the principle of sharia conformity. The dominant aspect of network availability and technology is the availability of SMS/internet/online banking. Limitations of this study are related to the search for previous research literature that discusses respondents with millennial age segmentation is still few.

Exploring drivers and barriers for organic poultry consumption

PurposeThe purpose of this paper is to identify drivers and barriers for the demand of organic poultry to provide recommendations for market actors.Design/methodology/approach644 consumers were interviewed through computer-assisted self-interviews in four regions (north, south, east and west) of Germany in front of conventional supermarkets and organic food shops. The survey data were analysed differentiating between three consumer segments. In addition to descriptive analysis, an explorative factor analysis was conducted and a multinomial logit model was applied.FindingsThe results show that consumer preferences, attitudes and determinants of purchase decisions differ significantly between consumer groups. Price sensitivity, appreciation of animal-welfare, belief in altruistic benefits of organic poultry production, as well as the influence of media reports are important determinants for the purchase decision of different consumer segments.Practical implicationsThis study provides information for market actors regarding which strategies to adopt to increase the sales potential of organic poultry indifferent consumer segments.Originality/valueThe organic poultry market has great potential as it can meet the growing demand for healthy and sustainable products which are produced in an animal-friendly way. However, its market share still lies far below the overall organic market share for food products in total. Reasons for the low market share were not explored in-depth until now.

Order-Flow Segmentation, Liquidity, and Price Discovery: The Role of Latency Delays

Latency delays intentionally slow order execution at an exchange, often to protect market makers against latency arbitrage. We study informed trading in a fragmented market in which one exchange introduces a latency delay on market orders. Liquidity improves at the delayed exchange as informed investors emigrate to the conventional exchange, where liquidity worsens. In aggregate, implementing a latency delay worsens total expected welfare. We find that the impact on price discovery depends on the relative abundance of speculators. If the exchange with delay technology competes against a conventional exchange, it implements a delay only if it has sufficiently low market share.

Development Strategy Analysis of Fertilizer Company Using BCG Matriks Method

This study aims to analyse the strategy of a fertilizer company that produces urea-based fertilizer and organic fertilizer. A company should always have a certain development strategy by observing its growth rate and comparing it with other competitors. Boston Consulting Group (BCG) Matrix can recommend regarding the strategy needed for resource allocation and company development. Two competitors are chosen to decide this company position: the first one is a market leader with the best company growth rate and highest relative market share, and the second one is an equivalent to the company being studied in terms of its production and sales. The growth of 5.63% in fertilizer sales indicates a high market share growth rate. The relative market share of this fertilizer company compared to the first competitor and the second competitor is 0.117 and 0.476 respectively, meaning that it has a low market share as the number is smaller than 1. In BCG Matrix, this company is in the Question Marks position (quadrant II).

Strategi Produk Rekayasa Umum untuk Meningkatkan Market Share Dalam Negeri dengan Metode Delphi

This study aims to determine the cause of the low market share of general engineering products at PT PAL Indonesia. Market share analysis is considered important in winning business competition. The study uses qualitative descriptive methods and subject data in the form of opinions, attitudes, experiences or characteristics of a person or group of people who are the research subjects or informants. Source of data used are primary data derived from informant interviews and secondary data derived from supporting documents relevant to the study. To find out the root of the problem using the technique of root causes analysis with the fishbone method and find alternative solutions to the problem with the Delphi method in the form of a questionnaire to the experts. The results of the study explained that the low market share of general engineering products is found in every indicator of fishbone, namely: machine, method, material, manpower, measurement and mother nature. And in the opinion of the experts there is no significant difference of opinion in providing alternative solutions to every problem on the fishbone indicator. So the company can be used in making policies.

Influences on purchase intentions of organic food consumers in an emerging economy

PurposeThis paper aims to investigate the determinants of organic food buying behaviour in an emerging economy like India, where organic food yet has low market share in spite of its potential. Using the theory of planned behaviour (TPB) as the underlying basis, it attempts to explain the effect of attitude, subjective norms and the perceived behaviour control (PBC) on buying intention towards organic food among respondents in Delhi-National capital region, India. Additionally, it attempts to discriminate functional and constructive attitudes.Design/methodology/approachA quantitative questionnaire survey approach was used on 306 respondents and multiple linear regression was used to validate the research model.FindingsAttitudes and PBC have a significant positive impact on the intention to purchase organic food. This paper found subjective norms to be weak and barely significant to intention. The results conclude that health motives, past purchase behaviour, knowledge, affordability and trust in organic certification label are the main facilitators in organic food purchase. Primarily, the respondents see buying organic food regularly as being of value and enjoyable to them. A more favourable appearance vs conventional food was negatively related to behavioural intention.Originality/valueThis research could aid all stakeholders in the organic food sector, particularly emerging economies like India where the organic market is still nascent. It could be an essential driver to improve customer involvement and thus aid them in the decision-making process to choose organic food over conventional food. It also attempts to establish the usability of TPB in assessing functional attitudes based on constructive attitudes for organic food purchase.