Market share increase: What happens to productivity and profitability? Online publication date: Wed, 02-Dec-2009
by Zoltan Szegedi, Erik Korom
International Journal of Procurement Management (IJPM), Vol. 3, No. 1, 2010
Abstract: The bankruptcy of a fast-growing logistics provider claiming to have a remarkable market share can seriously shock the customers and the business community. On choosing the next provider, its former customers will pay more attention to company size, growth and corporate performance indicators. Do these measures affect one another and, if yes, to what extent? Is there a direct or an inverse effect? And, over all: What is the 'measure of competition' in the logistics service sector? We also examined the issue widely discussed in the related literature of whether higher productivity leads to lower costs resulting in a bigger market share, or perhaps it is just the other way round? Based on the calculations with the 2001-2006 figures of companies belonging to the logistics service related sectors, we could prove that productivity will/can be increased by raising market share, but on the other hand, market share cannot be enhanced through increased productivity.
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Procurement Management (IJPM):
Login with your Inderscience username and password:
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.
If you still need assistance, please email subs@inderscience.com
Our Blog 
Follow us on Twitter 
Visit us on Facebook