The Market Share Mirage

Law360, New York (September 23, 2011, 11:37 AM EDT) -- Hewlett Packard Co. shocked the business world by recently announcing that it might sell or spin off its PC group. That business was by many measures a huge success. HP had been the world’s leading PC maker for four years, and its 2010 market share was almost 40-percent larger than Dell Inc., its nearest competitor.

But market share can be an inaccurate indicator of market power, and it is too often regarded as a conclusion rather than an analytical input. HP’s PC business is a prime...
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