Why strategy should focus on producing more profit - not market share
When setting your strategy there is a big trap that you can fall into. By focussing your strategy to build a bigger business, to chase market share, you may end up with the problem that the larger business isn't more profitable. In fact, you can chase yourself into the commodity business, with a bigger, larger, busier, and weaker business.
Instead, your business should focus on producing more profit - not market share. Because the job of a leadership team is to develop and execute a strategy that produces a higher return on capital. Or put another way the business produces a higher profit than the industry average. This week Kevin and Brad talk about the importance of a strategy being focused on profit, and not market share.
