Selected could benefit from increasing market share

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Reference no: EM133600175

One of the companies I have selected is a catering company that has been in the market for a couple of years. They make Argentinian food, and they started by just making a couple of typical dishes. With time they grew and nowadays, they have several items on their menu, including some desserts. One of the things they do not currently offer is delivery, which limits their market share as plenty of customers are interested in the product, but because of the business' location, customers find it challenging to pick up the product from there.

Market share refers to who you are competing against does not have to be on a global and national scale. Your revenue divided by the available revenue is the formula to get the market share. Expanding the market share can bring some disadvantages as overexpansion can thin out resources. However, if a business plans on scaling, then it can be a great opportunity to expand its market share, which involves having an automated system, planning, and having more resources. The idea is to expand gradually (RevLocal, 2019). The catering company could benefit from increasing their market share as it would allow them to increase their revenue as well as the number of customers they have. It will also give them an opportunity to start catering to events, which in turn will increase their popularity, especially in the area.

As a new business, increasing their market share should involve having more resources, such as reliable transportation to ensure customer satisfaction. Additionally, they could also increase their market share by promoting their business to companies and doing corporate events. This would bring more steady revenue and a completely new clientele. Lastly, their market share could increase by working on capturing only the local market first. Once that has been achieved, the business can go ahead and focus on expanding. Los Angeles is a big area so there is a tendency for new business to quickly want to expand and offer products or services to the whole area. However, because population is large, distances from one area to the other one can be long, it is better to focus on one sector and grow from there.

QUESTIONS:

1. Ask a question about why the company your colleague selected could benefit from increasing its market share.

2. Provide an example of another company that implemented (or failed to implement) a recommendation that your colleague provided.

3. Offer an additional recommendation for how the company your colleague described could increase its market share, including a rationale for your recommendation.

Reference no: EM133600175

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