Impact of Market Share on Profitability of Heavy Vehicles Manufacturers-A Case Study of Hino Pak Ltd

Abstract

In the age of cut-throat competition, maximization of profit has become a challenging job for the firms. They always try to control those factors which influence their profitability. Before the phase of monitoring the determinants of profitability, this is inevitable to identify the factors which affect the firms' capability to earn profit. This paper addresses one of the important factors that is assumed to have high degree influence on the profit of firms. Market share of organizations have direct impact profitability on profitability. Therefore, in this paper, the effect of market share on the profitability of Heavy Vehicle Manufacturer i.e. Hino Pak Company limited. The correlation and regression analysis reveals that Market Share has a significant effect on Annual Profit, Return on Assets and Net Profit Margin. It means that greater the market share, greater the profitability of the firm.