Share, Search, and… Failure?
What do you know about market share?
Market share is the portion (expressed in percent) of the market that a product or company or brand occupies in a larger universe, in comparison with other products, companies, or brands. The market share can be analyzed under different aspects, considering larger or smaller universes.
For any company is very important to maintain or, even better, increase their share during the years and especially when new players appear in the game.
Let us see a very good example of how not taking care of your product can lead to drastic market share changes: let me introduce you to Microsoft Explorer.
Back in 2003, our big browser leader Microsoft Explorer had the 96% of the market share, being almost the unique place where to surf the web. Later that year, Firefox appeared as a big competitor and started gaining share from 2004 to 2010, making Microsoft Explorer lose some of their pizza portion in the big browser universe.
Where are customers looking for a next-level browser?
Was Microsoft scared? Perhaps.
But the thing is that this wasn’t the big monster they thought they’ll have to fight.
In 2008, while Firefox was growing and Microsoft slightly decreasing, the real big competitor came to life: Google Chrome. Till 2011 the growth of Google Chrome was almost insignificant for the big Explorer… but in that year Chrome started to grow rapidly gaining most of Internet Explorer’s share, and Firefox’s, and Safari’s. Chrome ended 2019 with 61% of the share, leaving Explorer and Firefox with 6% each.
There is a really good animated graph that shows this example: https://youtu.be/MyqvqmjMJ6I
I like this example because it’s clear about how new competitors can (and will) threaten the stability of some company’s share.
People started using more Chrome over Explorer, and also joking with this rivalry… It not the first time you will hear “I just used explorer to download Google Chrome”, right? Although I do know people who still are Explorer’s fans.
What team are you? Team Explorer or Team Chrome?
Hope you liked today’s “Let’s talk about…” topic, I look forward to reading your comments and positions about it!