THE IMPACT OF THE PRODUCT STRATEGY ON THE MARKET SHARE. THE CASE OF BULGARIAN WINERIES

Abstract

Product strategy is one of the main factors determining market share. Two variables are important in the planning of the product strategy of the winery – one is the level of specialization (diversification) of production and the second is the scale of production. This raises the question of what is an appropriate product strategy to be followed and how it will affect the market power and efficiency of the management of wineries. The purpose of this study is to analyze and assess the impact of product strategy on market share and to measure how market share influences the efficiency of the wineries in Bulgaria. The first stage of the methodological approach is to identify the relevance between applied product strategy and achieved market share of the winery. The second stage is to be evaluated the relevance between achieved market share and the level of efficiency of management of wineries. The statistical evidence proves that product strategy can influence market share and efficiency of management.

Keywords

• product strategy
• market share
• return on sales
• return on equity
• return on assets