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Strategies for Low Market Share Businesses
Studies show the positive correlation between profitability and market share. Yet, businesses with low market shares may not be at a disadvantage and can profit by exploiting their smallness. Low market share businesses must replace broad strategy with specific and far-ranging strategy. Burroughs, Crown Cork & Seal, and Union Camp all hold small shares of their industries, yet they compete with the largest corporations in their average returns on equity. Their strategy involves four major points outlined here.