The Determinants of Market Share: A Case Study of Iranian Food and Beverage Industries, (A Panal Data Approach)

This paper investigates the effects of advertising، profitability، degree of concentration on the market and Research & Development costs on the Market Share in the Iranian large food and beverage industries during the period of 2000-2011. For this purpose، the study used the statistics associated with large firms-with more than 50 employees. The panel data technique was used to estimate the model. The main results of this paper reveal that، the elasticity for market share with respect to profitability is greater than thoes for other explanatory variables such as advertising cost and R&D cost. Moreover the results indicate that concentration on the market has a positive and significant effect on the Market Share within the large industries. Thus،the main policy recommendations of this study is that Firms and business managers and executives as well as economic authorities can contribute to improve market share through providing the essential conditions to increase the research and development costs، advertising costs، and increase in profitability in the Iranian large beverage industries.