Using Everest’s Pioneers Strategies for Building Product Manufacturing

The attempt to climb to the top of Mount Everest, the first successful ascent by Sir Edmund Hillary and Tenzing Norgay in 1953 taught us a lot of valuable lessons that can be applied to building product manufacturers. Just as these mountaineers overcame the odds through preparation, teamwork, and a deep understanding of their environment, building product makers can find inspiration in their journey.

Understanding Market Share

Market share, expressed as a percentage of the total market volume or revenue is a fundamental concept for building product manufacturers. Absolute and relative market share data offers insights that guide sales and revenue growth strategies.

Absolute Market Share

Consider a business selling windows as an example. If they sell 3,800 windows in a year, and a total of 117,000 windows are sold nationwide, their absolute market share is 3.24 percent. It reflects their share of all windows sold.

Relative Market Share

Relative market share involves comparing a company’s sales or revenue with its competitors in a specific market segment. For instance, if the window company sells 3,800 units while three competitors collectively sell 12,132 windows, the company holds a 31% market share in the window market.

The Importance of Knowing Your Market Share

Market share statistics are pivotal in C-suite discussions and strategic planning. Market share is closely tied to profitability and influences hiring, marketing, and procurement decisions. However, the relationship between market share and profitability varies among industries.

Lessons from Everest for Building Product Manufacturers

Know Your Environment

Just as Everest climbers must understand their surroundings, manufacturers need to have a understanding of their competitive landscape. Market share data is great for identifying sales opportunities. It also helps with allocating resources effectively and adapting to market changes.

Plan a Route

The success of Hillary and Norgay’s Everest ascent was not just about possibility but meticulous planning. Manufacturers should create a strategic path for sales that optimizes resources.

Adapt to the Situation

Mountaineers learn from past expeditions and adjust their strategies. Similarly, building product manufacturers have to adapt to changing markets. They can do so by using market share insights to identify new trends and opportunities.