Weak Win

Sales volume gained by a company in competition with other suppliers when the customer has opened his relationship to new bidders because of the failure of his incumbent supplier.
(See also
Fail Market

,
Win Market

and Volatility.)

Example 1:

In down markets, USG's share is very stable. The company maintains volume with its large customers and takes marginal volume after the failure of other competitors. The company has been especially good at consolidating its share in the Primary position with its Medium and Small customers. (SIC 3270)

Explanation:USG's share gain after the failure of other competitors is a "Weak Win." Where others have not failed the company is likely to have "Won" the share because of its superior service.

Example 2:

In the late l980s, Cummins Engine Company introduced a new line of engines that were riddled with flaws. As a result, rival Detroit Diesel snatched market share, which it has never surrendered. (Year Late 1980s-SIC 3519)

Explanation: Cummins Engine "failed" its customers with defective product. Detroit Diesel, when it gained market share after the failure of Cummins, had a "Weak Win."

Example 3:

Gateway will use AMD's Athlon microprocessors after a lag in supply from Intel. This gives AMD 9 of the top 10 computer makers as customers. (Year 2000-SIC 3575)

Explanation: Intel "failed" Gateway on deliveries, which opened up Gateway's relationship to AMD. AMD then had a Weak Win with this customer.

Example 4:

Motorola is telling retailers that at least 3/4 of the cellular phones in their stores must be made by Motorola. If the quota is not met, they won't get new products. Some vendors are dropping Motorola in response. (Year 1996-SIC 3669)

Explanation: Makers of cellular phones that compete with Motorola will gain business with the retailers that are dropping Motorola. These gains in business will be Weak Wins for Motorola's competitors because their gains are the result of a previous "failure" by Motorola.

Example 5:

Huffy and Murray took over the low-end market, where 70% of bikes are sold. Trek, Giant, and Specialized became leaders in mountain bikes. Delivery problems forced many dealers to give floor space to competing brands. (Year 1993-SIC 3751)

Explanation: The "failure" of the Primary Supplier to keep dealers stocked with inventory forced dealers to turn to Secondary Suppliers. These Secondary Suppliers had Weak Wins in this market.