High Margins are more important than High Market Share...Vince challenging the BCG Matrix
Vincenzo Belpiede ??????
30k ?? ?? B2B SaaS Venture Builder focused on software for sales & marketing professionals
I challenged #richardkoch on #twitter (link in the comments) on how the 波士顿谘询公司 matrix should switch from Market share to Margins to make sure that more people build sustainable businesses
...and Richard found my challenge "interesting"...you can find my replies in the comment below
Of course there are large businesses that have grown with razor thin margins like 亚马逊 but for many businesses aiming at only market share without high margins is suicidal
Thanks Markus Venzin and Nico Valenti Gatto at Università Bocconi for teaching me the #bcgmatrix way back in 2002 as it really helped to solidify in me the belief that the matrix has some fundamental flows
One of the key reasons I decided to focus on #saas is that business and productivity software enjoys relatively high margins which can help you make your company successful even if you don't have the largest market share
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1 年Agreed!
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1 年Vincenzo, thanks for sharing!
C-Suite, Inventor, Entrepreneur & Executive Consultant, Co-Founder of ROCS Global, Inc.
1 年I am on your side of the fence, Vincenzo. Market share is a great metric, but really, for start-ups it is difficult to even know what share you are starting at. Usually it is like 0.000001% when starting and thats when you even start taking orders. If one is starting a whole new category of offerings, or is a new unit within some large global concern, then market share may be a great driving metric. If you are the founder and hoping to have the control about when to seek investment to scale faster, then I'd favor the Margin argument. If one is creating great value, and has the means to message that effectively to the target audiences, that is a great metric and more sound for sure.
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1 年Food for thought here ??Vincenzo Belpiede.
Director at Università Bocconi
1 年Nice idea!