Market Structure Profile Analysis and Strategic Growth Opportunities

by John Weber


  PDF
Fall 1977

Volume 20
Issue 1


Full Article Browse Issue

 

Abstract

The article focuses on market structure profile analysis and strategic growth opportunities. In utilizing market structure profile (MSP) analysis, the firm develops a pragmatically oriented market structure profile for each relevant product line it markets. These profiles themselves are policy-oriented in that each profile suggests an appropriate mix of different growth strategies. The planner begins by estimating industrial market potential (IMP) for the product line of concern. In MSP analysis, the words industry and product line are synonymous and are defined quite narrowly. An industry or product line is comprised of any and all products which do or can perform the same basic function. Industry market potential is defined in terms of unit sales potential and IMP equals the number of relevant consumers times the number of use occasions which arise per relevant consumer per operating period. Once having estimated IMP, the task is to explain in terms of market gaps and marketing gaps, exactly why the firm's own sales in that product line fall short of the IMP.

California Management Review

Berkeley-Haas's Premier Management Journal

Published at Berkeley Haas for more than sixty years, California Management Review seeks to share knowledge that challenges convention and shows a better way of doing business.

Learn more
Follow Us