Marketshare is the amount of allocation that an organization gets from thetotal purchases that customers make of a particular product or aservice they receive. It reveals the consumers’ preference forgoods from a particular firm over other companies. If an organizationhas higher market share, it means that they will make more profits.If the market grows, it is likely that the firm with the highestshares will continue to make more profits than the others. Thecompany cannot dictate the manner in which the population increases.However, it can control a number of shares it wants to earn(Berkowitz, 2006). There are three types of market share thatinclude, the ordinary also known as the common shares, preference andthe redeemable shares (Marson, 2013).
Inthe ordinary or the common shares, the stakeholders get theallocations of the company’s income after the settlement of thepreferred dividends. The company’s directors decide the totalamount of money the company should save in their accounts and thosethat become dividends (Goyal, & Goyal, 2006). The common orequity shareholders have the authority to control the firm just likethe owners. They can participate in activities such as voting in theannual meetings. The owners of these shares have the right to receivedividends if they are available in the company (Marson, 2013).
Thepreference market shares differ from the ordinary shares. Theshareholders have different rights compared to those of the commonshareholders. They get the priority allocation of the dividends ifthe dividends are limited. They also receive a lot of dividends thantheir counterparts who own the ordinary shares (Mobius, 2007). In theevent of the firm’s dissolution, they are the first to get thecompany’s shares. However, these shareholders lack the right toparticipate in the voting activity in any meeting (Mobius, 2007).They possess greater voting rights than the ordinary shareholder, incase they participate in events that require choices (Mobius, 2007).
Theredeemable shares are those that the company owners issue, on thecondition that company will buy them back in future when there is aneed to purchase them back (Marson, 2013). The shareholders lack theright to take part in any voting exercises. The company may buy backthese shares strictly from the gains or returns collected. The ownersof the firm sell these shares only when they cannot buy back theother shares. The directors of the company will be the only peoplewho lose the ownership of the employees once the firm sell andre-purchases these shares (Marson, 2013).
Thecapacity growth of a healthcare institution will help in determiningits credibility and credence. A hospital or clinic built in asurrounding with a balanced population will help in its growth anddevelopment (Marcincko & Hetico, 2012). It should strive toexpand to different locations to serve a larger market. For example,the establishment of Joslin Clinic began in England. Currently, ithas branches all over the world (Berkowitz, 2006). A healthcarefacility could come up with different methods that will distinct themfrom the other facilities. They could use strategies such as pricingtheir services and products differently from the other products(Marcincko & Hetico, 2012). They could also stand out amongst theother institutions by attracting more customers that seek theirmedical services (Berkowitz, 2006). Any institution should alwaysmeasure their performance in the market by their amount of preferredshares. These shares are the most important when compared to theother two shares.
Berkowitz,E.N., (2006). Essentialsof healthcare marketing. Burlington,VT: Jones and Barlett Learning.
Goyal,A., & Goyal., M., (2006). FinancialMarket Operations. New Delhi: FK Publications
Marcinko,D.E., & Letico, H.R., (2012). Hospitalsand health care organizations: Management strategies, operationaltechniques, tools, templates and case studies.Boca Raton: CRS Press.
Marson,J. (2013). Businesslaw. UnitedKingdom:OUP Oxford.
Mobius,M (2007). Equities:An introduction to the core concepts. NewYork, NY: John Wiley and Sons.