Prof. Nelson featured in Globe article on growth strategies
The August 13 article, “The mad scramble for market share can trip up growth-hungry businesses,” in the Boston Globe, analyzed the link between capturing market share and boosting profitability. The article offered up examples of America West floundering while Southwest Airlines profited; the competition between BMW and Daimler-Benz; the acquisition of Compaq by Hewlett-Packard. “Such case studies hold lessons for business leaders concerned about managing their brands, suggested Teresa Nelson, strategy professor at the Simmons School of Management in Boston. ‘There’s a fundamental trade-off between your ability to gain market share and your ability to specialize and serve customers,’ she said. In a larger sense, Nelson said, ‘If you look at the various performance measures for businesses-there’s growth, innovation, return on equity, stock price, and market share-sometimes focusing on one area causes you to lose in another. If you’re going to invest in innovation, that’s going to cost you money. If you’re going to invest in diversification through acquisitions, that’s going to cost you money.’”
Read the full article: Boston Globe
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