#2 Key Question: What rationale do international top companies follow for market success?

While every business is unique, they all pursue the same path toward a common goal: maximizing value on the basis of the Economic Principle. Based on the Economic Principle the stages that a company must go through to achieve market success are as follows:

The market approach of a company aims to attract as many customers as possible in relevant markets and segments, ensuring the highest possible level of value creation for its products in the long term. Entrepreneurial market success, in line with the Economic Principle, is attained when the company’s offerings consistently achieve maximum value creation:

  • Generating sustainable returns above the cost of capital, while recovering all costs, investments and interest expenditures associated with the products or services.

The greatest opportunity for above-average value creation and profitability lies in attaining a leading market share position before market and competitive dynamics mature. Generally, in a market maturity phase, price stability prevails, the likelihood of profit-reducing competitive actions is low and the investment requirements are modest. Thus, the best conditions for maximizing value creation and cash flow are established

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