Market Leader Strategies
Market leader strategies-most of the industries contain an acknowledged market leader. The leader has the biggest market share and leads the other firms usually in price changes, new product introductions, and promotion spending, distribution coverage. Competitors focus on the leader like a company to challenge, imitate, or avoid. Leading firms can take any of three actions to remain number one.
A). Expanding the overall demand-the leader achieve the most while the market expands.
- Fresh users can be attracted from those who are still unaware of the product.
- Fresh uses can be discovered and marketed to increase purchase.
- More usage approach aim at convincing buyers to use the product more frequently and in superior amounts for each present usage occasion.
B). Protecting market share.
- Prevent or fix weaknesses that provide opportunity for competitors.
- The best defence is a well offense, and the most excellent response is continuous innovation.
- Enhance competitive effectiveness and value to customers.
C). Expanding market share occasionally the leaders may expand their relative market share. If in the server market, this expansion comes then even small increases in share may lead to big increases in profitability.