To Be A Substantial Business …

What does it mean to be a substantial business? Having the largest market share? How does a business get to be substantial? Manfred Hasseler, founder of Swoopo, a pennies auction site says,

“to be a substantial business you have to make as many people happy as possible.”

I disagree. First, I do not know what it means to be substantial and how long that lasts and second, should a business strive to make as many people happy as possible?  The key to any business is making choices, choosing the segment to serve and target them and make them “incredibly happy” and do so in a profitable way. Apple and Blackberry (RIM) do not have “substantial” market share in the mobile phone market and definitely they do not make as many people happy as possible, but those they chose to serve are incredibly happy and it shows in their lopsided profit share of 30% with a mere 3% market share.

Success is defined by the long term profit,  not by the size of market share and definitely not achieved by trying to make as many people happy as possible.