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Determination of Market Share

Autor:   •  January 9, 2018  •  Essay  •  257 Words (2 Pages)  •  63 Views

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Strategic Management Accounting (SMA) is the gathering of data needed to enable determination of market share and competitors’ pricing, costs and volume. The Traditional Management Accounting techniques is oriented towards internal practices of management accounting and lay more emphasis on cost reduction, management and control, performance evaluation and product management, whilst SMA emphasizes majorly on strategic positioning.

A company which monitors market share can measure the extent to which it is gaining or losing competitive edge. Further, competitor’s costs allow firms to detect when the competitor is trying to change its competitive positions and finally knowledge of market share and cost structure permits decisions to be evaluated in the light of possible competitor reactions. The Benefits obtained by introduction of Strategic Management Accounting in an Organization are listed below:

Strategic Management Accounting (SMA) is the gathering of data needed to enable determination of market share and competitors’ pricing, costs and volume. The Traditional Management Accounting techniques is oriented towards internal practices of management accounting and lay more emphasis on cost reduction, management and control, performance evaluation and product management, whilst SMA emphasizes majorly on strategic positioning.

A company which monitors market share can measure the extent to which it is gaining or losing competitive edge. Further, competitor’s costs allow firms to detect when the competitor is trying to change its competitive positions and finally knowledge of market share and cost structure permits decisions to be evaluated in the light of possible competitor reactions. The Benefits obtained by introduction of Strategic Management Accounting in an Organization are listed below:

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