Analysis 17: Share Shift Across the Customer Size and Role Segmentation Matrix


HOW TO INTERPRET THE ANALYSIS: This industry is consolidating strongly into the Primary Role position. Primary Role suppliers have increased their total share of customer purchases by 6%, while Secondary Role suppliers and Other Role suppliers both lost share. The trend was similar within all of the customer size segments, with the exception of the Small customers. This trend would happen when there is little or no difference in pricing by the Tertiary and Other Role suppliers compared to the Primary and Secondary Role suppliers. It also would occur when the Primary Role suppliers offer something of significant value that the other Role suppliers cannot offer, for example, the ability to serve multiple locations for the customer with short order cycle timing.

PURPOSE: This analysis enables the company to quantify the consolidation or deconsolidation occurring in the industry. It shows the market share shift by size and role segment. The company would use this analysis to form its expectations for volume change in the average customer size and role position.

APPROACH: The company calculates the total market share points by size and role at the beginning of the analytical period and at the conclusion, subtracting the earlier period's results from the latter period's results in this analysis.

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Return to Diagnose Segments: Growth and Profitability of Size/Role Segments

Recommended Reading

For a greater overall perspective on this subject, we recommend the following related items:


Symptoms and Implications: Symptoms developing in the market that would suggest the need for this analysis.

Perspectives: Conclusions we have reached as a result of our long-term study and observations.

  • "Failure Shifts More Share Than Success": For a company trying to gain share in a mature market, nothing succeeds like failure – the failure of a competitor. (1991)

  • "The Big Slice of the Pie": The head of one industry leader explains his company's insistence on being a key supplier to each of his customers: "The guy with the big slice of the pie doesn't go hungry." The workings of the typical hostile market provide solid support for this philosophy. (1995)

  • "The Real Reason Market Share Matters": Market share does count, but for more than the reasons thought previously. (1991)

  • "Which Customers Matter Most?": Average customer profitability differs dramatically in non-hostile and hostile markets. Does the relative importance of one customer versus another change as well? The answer is less evident than many business leaders believe. (1994)