But the KK could be a victim of the success of this strategy. Any OMC is not allowed to hold more than 25% of the retail market, so I guess someone at ERC is already plotting how to hack KK down - They are at 31%??

I wouldnt even think the strategy was to shore up the market share.... it might have been to restore confidence that had been eroded during all those fights they had and have something nice to talk about KK and maintain their market share.... and clearly, it worked.... instead of consumers and investors seeing them as a horse throwing its last kicks, the fact that they could still give discounts regained the public confidence and the sour taste of the bad news quickly left our mouths/memories....

I thought so. Thanks for the link.

Pardon my ignorance, but is market share determined by the number of outlets or is it by the volume of sales?

VituVingiSana et al

Total lost market share owing to loss of Agrreko contract not because of KK card. Market share in itself does not lead to profits since one may have to sacrifice the margins inorder to sell more.

Cards do not make that much cash for the OMC since most organizations buying will insist on discounts owing to the huge volume of business. However, when the same organization agrees to buy lubes from you and LPG for staff (you start a scheme) the OMC recoups the lower margins.

The most profitable segment is retail i.e. service stations. Total leads here with over 35% share of the fuel business. However with ERC limiting the margins, more cash is being made from non fuel items in the stations such as rent on ATMS, restaurant, shop, service bay etc. Needless said KK stations lack competitiveness in this area. KK may grow but it will be some time before thay threaten Total in the retail segment.

Additionally there is no rule limiting one's market share (Total and Shell have at point in the recent past each controlled in excess of 30% of the market share)