Weak competitor
A Weak Competitor is a company that loses unit market share over a period of time. For example, if a market has a unit CAGR of 5%, and Company "B" has a unit CAGR of 3%, then Company "B" is weak.
(See also Strong Competitor)
Example 1:
In 1979, Detroit Diesel owned nearly 30% of the North American heavy-duty diesel truck-engine market. By 1987, it had only a 3% share.
(Year 1988-SIC 3714)
Explanation: Throughout the period from 1979-1987 Detroit Diesel lost market share. It was a Weak Competitor.
Example 2:
From 1987 to 1995, Kmart's market share dropped from 34.5% to 22.7%. Wal-Mart's market share went from 20.1% to 41.6%. Kmart was in urban America; Wal-Mart started out suburban and went urban.
(Year 1995-SIC 5331)
Explanation: Kmart lost share in its industry, making it a Weak Competitor. On the other hand, Wal-Mart gained share, making it a Strong Competitor in the industry.
Example 3:
In 1990, Perrier wrestled with a scandal that suggested Benzene, a suspected carcinogen, had seeped into its green bottles. This scandal cost the company more than half of its U.S. market share.
(Year 1991-SIC 2086)
Explanation: Perrier lost a great deal of market share during this period and was a Weak Competitor.
Example 4:
In recent years, Kodak's share of the highly competitive film market has dwindled to about 70% from as high as 76% five years ago, as competitors like Fuji and Konica wooed consumers with lower-priced versions of film.
(Year 1994-SIC 3861)
Explanation: During this period of time, Kodak was a Weak Competitor in its industry, losing market share.
Example 5:
Surveys indicate the Bells will lose 25% of residential market and 35% of the business market over 10 years due to competition from outsiders. In comparison, it took ATT 10 years to lose 40% of its long-distance market when deregulation opened things up.
(Year 1996-SIC 1021)
Explanation: ATT was a Weak Competitor during the ten years that it lost 40% of its long distance market share.