[QUOTE="masiisam"]
[QUOTE="Blaze-Agent"]
and by what metric do we go by gauging whats a success or failure? Marketshare does not carry over from generation to generation. Its just pointless. you ask how you gauge marketshare? you gauge it by whats you see right now. Ps2 domination and that marketshare left with that era of consoles. ps3, 360 and Wii all started from 0. thats the only way it could ever make sense. (i think the whole marketshare thing is a convulted mess that makes no sense).
ianuilliam
I understand where you're coming from but it's far cry to say it's pointless..Maybe here in SW..but outside these walls of fanboys and meaningless conversations marketshare has just as much importance, if not more than unit sales. As I said it has to be used to gauge current market trends and position in the market place. As a company that wants to be successful you can't just "reset the clock". That data is used for everything... Budgets, marketing, manufacturing, margins, cost of capital etc…Name it and is has to be used.
A corporation such as Sony has to answer to shareholders. That corporation needs to provide confidence (among many other things) to those shareholders as well as new investors that "this is why you need to have your money vested with us".Im sorry, but there isn't one holder that hasn't asked the question to themselves. Sony had Ex.80% market share 6 years ago and now it's down to Ex.30%. Why did it go down?..who gained the most? and is MY money where it should be.
You asked the question "by what metric do we go by gauging whats a success or failure? "
50M in unit sales.. of anything.. is clearly a success, but that's a short sided perception. Especially when your predecessor had roughly double that amount given the same time frame.
Corporate will want to know the what.. why.. and how are there not more sales and what needs to be done to capture more market share back
Those questions are certainly asked in the round tables deep in Sony. If they didn't have them.. they simply wouldn't be around.
Marketshare in the real world is usually looked at as an annual or quarterly thing. You compare how many units a company sold versus the total number of units sold of similar products. Comparing the growth or loss of marketshare from one year or quarter to the next gives a metric for how effective your marketing is. Syaing Sony lost marketshare because there aren't as many PS3's sold from 2006-2011 as there are PS2s sold from 2000-2011 isn't remotely how the word is used in the real world.Here's an example. I'm ignoring Wii and PS2, because I don't have their quarterly sales figures in front of me, so assuming PS3 + 360 = the entire market: In Q3 2010 (Jul-Sep), 360 sold 2.8 million and PS3 sold 3.5 million. 360 had a 44.4% marketshare of home consoles that quarter (again, assuming only PS3 and 360 existed). In Q3 2011, 360 sold 2.3 million and PS3 sold 3.7 million. 360 had a 38.3% marketshare of home consoles for that quarter. 360 experienced a drop in marketshare for Q3, year-over-year, of 6.1%.
I disagree the term is ONLY used in the scope of comparative alternates in the market place in that current time frame (Monthly figures are the most common). Business is not lost or gained in 3 month periods and history plays a larger role in quantifying the net results of all operations. Where we are effective and where we need to improve takes history and while the "clock" resets the history of a predecessor IE Sales targets/market share define a path.
Market share is certainly used (among other things) to define say forecasted new unit sales. If no history is in place because of a superseded SKU, projections take into account current market share and market position of the company. That's simply from an operational standpoint.
Now from an investors standpoint the term is also used in somewhat the same context. Current comparative alternatives in the market place AND history of market share.I simply cant imagine looking at an option …not viewing the trend of a company that had substantial market share loss and not asking the very questions I mentioned before.
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