Where does your company stand in the x axis?

Let us consider the example of a company with annual sales of 6 000 000 euros.
Let us consider that variable costs are 60% of price.
Let us consider that fixed costs are 1 500 000 euros.
So, that company has a net profit of 900 000 euros.

What happens when that company decides to reduce price in order to gain market share, in order to increase net profit?

In the following table you can see how much the market share must increase in order to just keep the same net profit.

In the following graphic you can see the same relationship but for different variable costs weights:

Do you know where does your company stand in the x axis?

Beware of market share delusion. Volume is vanity profit is sanity.