# data[].attributes.body
Product followed by distribution (both short-term and long-term).

# data[].attributes.body
Discounts has a negative effect on elasti

# data[].attributes.body
Product

# data[].attributes.body
Relationship between R&D and market share

R&D has a positive effect on market share as long as it leads to innovative products that can satisfy customer needs better than existing goods. If the R&D expenditures also lead to entry barriers the effect is even more pronounced (Szymanski et al. 1993).

Relationship between R&D and profitability

Regularly releasing new products, features, or innovative service models can create a positive reputation about the company as it regularly invents new ways to better serve their customers’ needs, particularly in high barrier to entry categories.

A company may also receive a price premium as a result of R&D efforts due to the fact that, “customers may be willing to buy more of the goods and pay a premium price for these more innovative and better quality products.” The resulting higher demand for the products/services of a company with high R&D expenditures is more likely to offset the cost of investment.

Relevant examples of R&D investments leading to increased market shares can be found in the pharmaceutical industry. Pharmaceutical companies often have high R&D expenditures early in the medical development process (to cover trials, certifications, etc.). However, upon the successful development and launch of a new medicine, patents provide pharma companies with a strong entry barrier, and therefore, will be able to enjoy higher market share. R&D can also in many cases make production processes more efficient, and combined with being able to charge high price premiums this will lead to increased profitability.

# data[].attributes.body
If the quality of the marketing effort is sufficient, a right amount invested in advertising will increase market share. This includes increased sales, but can also intangible values such as increased loyalty, satisfaction, and brand awareness.

The article explains ad expenditures using three variables: marketing expenses, increased sales induced by said expenses, and finally the offset between the two variables.

It posits that if quality is held constant, expenditures in advertisement are positively related to market share.

# data[].attributes.body
Product/service quality significantly moderates the estimate of market share-profitability relationship. Superior product quality can lower manufacturing cost, service cost (e.g. warranty), and charge a higher price, leading to higher profitability.

# data[].attributes.body
Intangible factors are e.g., goodwill, strategic decision-making skills and market orientation. Intangible factors positively affect both market share and profitability, but comes with a time lag. Market share has a significant and positive effect on business profits, meaning that high market share one year could lead to high profits the next year. Example: Apple’s success and Steve Jobs vision of the market. It drove the market to invest once they believed in his vision. Tesla and Elon Musk is a similar example.

# data[].attributes.body
The first link between growth rate and share is negative. This means that e.g. in the fashion industry, which is relatively more attractive by businesses due to high margins and growing demand, there will be a large number of competitors, thus the market growth rate and market share will be low.

The second link between market share and profitability is positive. Though operate in high growth market concurs higher marketing costs, the scales of economy, which reduces the production costs and the increased sales contribute to the growing profit.

As in the fast-fashion industry. Though the market features high growth, the market share of each competitor is small, but with the ec

# data[].attributes.body
In the product pricing strategy, it depends on where the company is operating in the demand curve. High market share business could charge higher prices without losing sales when high market share endows a business with greater market power.
Example: bread

# data[].attributes.body
By using more resources on acquiring more employees which have more knowledge about what they are selling and teach them how to be a good seller, can increase the market share. This makes it possible to serve more customers and sell more, which again can lead to higher profitability if the company have the resources to spend more on the sales force and the profits surpasses the costs.

# data[].attributes.body
Market share impact: The higher the concentration in the industry, the fewer players with a higher market share (total market share 100%)
– Ex. mobile, credit card, shipping, logistics, movie theaters in the Nordics ...

Profitability impact: The benefit with fewer players is that they can collude to drive up prices (monopoly tendencies)
– Ex. consultant firms

# data[].attributes.body
The effect of customised products on market share and profitability is equivocal. We can see with mass customisation that we can achieve both high profitability and high market share like for example: Dell (computer company) and Obag (handbag company). Instead, small niche markets like the ones of artigianal products, are another side of customisation which however have high profitability but low market share.

# data[].attributes.body
Market share:
a broad product line can can higher the market share even when consumers engage in variety seeking behaviour. This is because you will be able to cater to many small segments when introducing new products. For example: in a company that owns both the low price, medium price, and high price products, customers are more likely to choose them in a situation. For example Coop has Xtra, Coop, and Smak forskjellen products.

Profitability:
Less competition as you are catering to many customer needs. However, increased costs due to the extended lines. It is hard to maintain profitability if you are producing many similar productsCan be positive if you can achieve  synergies. For example: If you produce both Omo and Blenda you can use the same facilities.

# data[].attributes.headline
Debate: Each group should provide evidence of the impact on market share and profitability and find EXAMPLES

# data[].attributes.subject
Debate: Each group should provide evidence of the impact on market share and profitability and find EXAMPLES