I was recently at a meeting with a Senior Vice President of a Fortune 500 company. As we looked at market penetration data, it became strikingly obvious that in some markets the company had nearly 80% market share, while in others, market share was drastically lower. (This is true of all businesses – it’s partly based on how “granularly” you cut the segments.)
This kind of information is only useful if it helps you make decisions: Should we focus sales efforts on segments that are already highly penetrated, or should we focus on weak areas?
The answer is that in areas with high market share – keep doing what works. In areas with low market share, there might be enormous potential – but first you need to understand what went wrong. Is it simply that sales wasn’t targeting those companies, or perhaps the product didn’t sufficiently address those customers’ needs. Fix the problems with product before redirecting sales efforts to under-penetrated markets.