The topic I want to discuss in this blog is: will company be better off if they decide to target on one specific market within a big market circle. For example, within the sport wearing and accessories industry, there are many companies such as Nike, Adidas, Puma and so on. They almost produce every sports wearing and equipments: basketball, soccer, football, hockey and running. At the result, they own large market share and make a lot of profit from it. However, there are still some companies like Lululemon, they target on specific market, Yoga market, and they are operating quiet well and making a lot of profit as well. Another example will be Sony and Apple, they are both 3c and electronic companies that making tons of profits every year. however, in terms of market shares and market involvement, Sony does provide more type of products to the customers. Sony produces TVs, Cell Phones, Laptops, Speakers, walkman and so on. Compared to Sony, Apple manly focuses on producing cell phones, laptops and portable music players. Even though, there are differences in market size and market involvements, both companies are making almost same amount of profits every year. therefore, is market involvement and market size really matter in terms of profit maximizing?

       This can be addressed in many different ways. In terms of market size and involvement, if a company involves in many different areas, the management and quality control of the company will be hard to control and manage. In order for companies like that to make profit, they need to have well-planned and well-structured company managing and quality control system, otherwise, the “larger” the company is, the messier it will be. On the other hand, company like Apple and Lululemon, since they target on specific market, they have relatively less stress and pressure over management, the only thing they need to do is concentrating and focusing on designing new and attractive products to compete with those “large” companies. Also, if a person is looking for specific type of products, for example, a yoga wearing or a smart phone, they will tend to choose yoga wearing from Lululemon and smart phone from Apple other than Nike and Sony. This is because, most people believe they quality will be better if a company only producing on or few specific products.

      Overall, to determine which one is actually better, it’s really depend on what type of business model you want your company to be.