consider business model innovation This is the second of five articles addressing strategies – other than discounting – that can be applied to increase market share. Of course, prior to implementing one or more of these strategies, businesses should determine whether increasing market share is desirable. Profits are generally more important than market share, and […]

consider business model innovation This is the second of five articles addressing strategies – other than discounting – that can be applied to increase market share. Of course, prior to implementing one or more of these strategies, businesses should determine whether increasing market share is desirable. Profits are generally more important than market share, and increasing market share does not always increase profitability. Indeed, Venture Capitalist, Mark Cuban, talks of the advantages of identifying the smallest possible market. In a speech in 2013, Clayton Christensen, the Harvard professor who coined the phrase ‘disruptive innovation’ talked at length about one of the great disruptive innovations of the 20th century. It was the General Motors Acceptance Corporation’s introduction of personal loans in the early 1900s. Not only did this innovation disrupt the finance and banking industries – but it drove the growth of motor vehicle sales in the United States. Professor Christensen…