If You See This Kind of Market Share Gains, Don't Get Excited but Investigate - Chart Of The Day 23 November 2018 - Equitymaster
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If You See This Kind of Market Share Gains, Don't Get Excited but Investigate
Nov 23, 2018


Talking about market share gains, it is very interesting to see a company gaining market share on the back of product/service differentiation.

However, many a times, investors and analysts get excited by looking at market share gains even if they are at the expense of profitability.

Thus, whenever we see a company gaining market share, we should be sceptical and try to investigate the reason for the same.

This is exactly what we did.

When we saw the market share gains of this company, we were stunned.

I activated the Sherlock Holmes in me.

The first thing I did was find out what this company is doing different from the other player and what are the dynamics of the industry.

What we found was interesting. This company does two things differently.

First, chose a different market and second, it tried to understand the problems or the pain points of its customers...and provided solutions to them.

It offered them a Win-Win solution.

Happy Customer + Happy Company = A Win-Win Solution

And if history is to be believed, win-win solutions have durability and longevity against a win-lose or loose-loose solutions.

At Smart Money Secrets, we are always try to find obvious answers, which off course don't look obvious until we find them.

Data Source: Company

This Chart Of The Day was published in The 5 Minute WrapUp - We're Ready with Our Latest Recommendation: An Infinite Return Business

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