The U-curve marks the connection between market share and profitability in the context of the industry-referred success research.

Explanation

Michael Everett Porter, which concerns itself for the 1970er years with the connection between market success and strategy, found out in a number of empirical investigations that

• Enterprise with very small market share ("specialist", "focusing") and
• Enterprise with very large market share ("generalists", "standardisation")

a significantly high profitability exhibit. Other competitors - with moderate market shares - reach however small competitor with moderate market shares "sit between the chairs" (stucco into the middle): They are too small, in order to compete with the market leaders, and too largely, in order to be able to use the Nischeneconomies of the specialists. The statements of size for high regarding the market share vary with empirical findings. Thus the span for a stucco into the middle with ten to 20 per cent market share in several studies will be called, moved during itself the Spannbreite for specialists in the order of magnitude of up to five per cent (all specialists together however no more than ten per cent) and observed for enterprises with more than 40 per cent market share again falling.

Literature

• Caves, R.E.; Porter, Michael E.; Spence, A.M., Competition into the open economy, Cambridge: Haravard University press 1980.
• Montgomery, Cynthia A.; Porter, Michael E. (Eds.), Strategy. Seeking and Securing Competitive Advantage, Boston/measure.: Harvard Business press 1991
• Porter, Michael E., Consumer behavior, retailer power, and more manufacturer strategy into more consumer goods industries, doctoral thesis (unpublished) Harvard 1973.
• Porter, Michael E., note on the structural analysis OF of industries. Case No. 9-376-054, Boston/measure.: Intercollegiate Case clearing House 1974.
• Porter, Michael E., interfire choince, strategy and bilateral market power, Harvard Economic Studies, Cambridge/measure.: Harvard University press 1976.
• Porter, Michael E., Market structure, strategy formulation, and firm profitability: The theory OF strategic groups and mobility barriers, in: Cady, J. (Hg.): Marketing and the public interest, Cambridge/measure.: Marketing Science of institutes 1978, P. 101 - 126.
• Porter, Michael E., The Structure within industry and Companies' performance, in: The Review OF Economics and Statistics, 62. Jg. 1979, P. 214 - 227.
• Porter, Michael E., Competitive Strategy. Techniques for Analyzing Industries and Competitors, New York: Free press 1980.
• Porter, Michael E., Strategic interaction: Some lessons from industry histories for theory and antutrust policy, in: Salop, S.C.: Strategy, predation, and antitrustz analysis, Washington 1981, P. 449 - 506.
• Porter, Michael E., Cases into competitive Strategy, New York: The Free press 1983.
• Porter, Michael E., Industrial Organization and the evolution OF concepts for strategic planning: The new learning, in: MDE, 4. Jg. 1983, No. 3. P. 172 - 180.
• Porter, Michael E., competition strategy, methods to the analysis of industries and competitor, 1. A., Frankfurt (Main): Campus 1983.
• Porter, Michael E., Competitive Advantage, New York: Free press 1985. Competition strategy
• Porter, Michael E., Competition in global Industries, Boston/measure. 1986.
• Sheth, Jagdish/Rajenda Sisioda, the law of the three. Why always three enterprises a market control and Nischenabieter nevertheless a chance have. Munich: Talking LINE 2003. ISBN3-478-74490-3

See also

Michael_E. more _Porter | competition strategy | competition advantage

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