Rankings and market shares
Rankings and market share are reports describing the business performance as compared to other players in the market (unlike Profit and Loss statement using purely internal business information).
It is composed of a couple of rankings, depending on the metrics of interest:
- Sales ranking, i.e. what has been the overall sales value in the past periods. It reveals how interesting the business is for customers as a source of supply. Independently of the other indicators this one shows best the development potential of the business - even if we maintain high cash and profit level, sales decline means that the other quantities are at risk.
- Net profit, revealing the financial performance, in practice equal to sales reduced by all costs, including depreciation. Net profit indicates how sustainable the company strategy is. High sales at low or negative profit level would require price increase or cutting cost to avoid bankruptcy and elimination from the market. This, in turn, would be to reduce sales potential.
- Cash at the company disposal. This quantity might vary strongly between periods as it grows with generated positive EBITDA, and declines at negative EBITDA or is you invest in fixed assets. Cash indicates how stable the company is, and shows the investment potential, or readiness to gain shares by initiating price war.
The report has a couple of filters, what helps looking at the position within smaller game domains. The bigger the domain (more general choice of filters), to more significant and "aspirational" ranking. The available filters are:
- All businesses/only active players. All businesses include the passive business, i.e. those existing in the market since the very beginning. Initially these businesses would dominate the markets (as the market matures their role is to be reduced), so whet the market is immature it might be good to look at the rank excluding these passive businesses.
- The market, to which the ranking applies. By default it is the player's business market.
- Business form. Again - the default value is the one owned by the player, but it can be seen among all businesses.
are a couple of independent reports. The market share report always shows how big part of a market domain is taken by specified products/businesses etc. To interpret well the quantities it is critical to understand what share (of what in what) the report illustrates. To do so you might use the filters. The first filter always specifies the market. Since the markets are to a great extent independent there are no cross reports (of market share of business "A" operating in the market "X" in the market "Y"). The market share reports include:
- Business share showing the overall sales within a period, within the specified business forms (channel). For instance market share of a producer would be its sales divided by overall sales of all producers in the market, for distributor - sales of a distributor divided by overall distributors' sales. The exception are the end businesses (retail+HoReCa). Here the overall domain might be specified, so that one can see the business sales related to overall end-user channels (all retailers and HoReCa), just to retailers ot just to HoReCa, or even to retail chains/within the group of independent retailers etc. You can always limit the number of businesses you'd like to see in the report by selecting from the multiple-choice list and clicking "update report".
- Brand owners is a version of the previous report, however instead of business sales it shows the sales of a group of products whose brand are owned by businesses. If a manufacturer produces own brand products for a retail chain - their sales would be visible in the business share report as the manufacturers chunk, however, in the brand owners report is would be allocated to the brand owner. Moreover, since this report shows the share of a group of products - we might observe their share at different distribution level or within individual channels. The same philosophy applies to more detailed reports which are...
- Brands shares and