The present study argues that the tradeoff between short run profits and market share is at the apex of the distinction between strategies of competitive advantage vis-a-vis transient advantage. A method of empirically estimating such a tradeoff is outlined. The major finding is that the strategy of transient advantage predominates only when it enables the firm to recover a part of the fixed costs. Generally there will be a reduction in the market share if the additional costs of absorption of the transient strategy exceed its incremental contribution to profit. The strategy of competitive advantage is superior with respect to products and non-price decisions that have stable and increasing long run market shares.