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How Does a Business Increase Market Leadership?

Article Details
  • Written By: Esther Ejim
  • Edited By: Kaci Lane Hindman
  • Last Modified Date: 18 August 2018
  • Copyright Protected:
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    Conjecture Corporation
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The process by which a business can increase market leadership is one that is at the forefront of the business agenda for most companies. Market positioning is vital to the success of a business and to the ability of a particular business to break out of the pack and firmly establish itself as one of the key players in terms of market leadership for that particular industry. The methods for increasing market leadership include the application of strategic marketing principles aimed at maximizing the positive attributes in the business environment and properly managing or mitigating any potential negatives from other attributes. To this end, part of the process for increasing market leadership includes the application of competitive advantage, something that is related to the business and operational strategies of the company. Other actions that can help a company in its quest to increase its profile in a market include the conduction of various types of analysis with the aim of discovering the best type of business strategy to implement.

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As part of the drive to attain market leadership, a company should first define its corporate objective since this will give it a yardstick with which to determine how to react in different situations that may arise during the operation of the business. With this in mind, the company should conduct both an external and internal analysis of its environment with the aim of utilizing the data collated during such an analysis in the formulation of constructive business strategies. For example, the company should analyze the competition in its defined market since this knowledge will help it formulate strategic marketing plans. Other aspects the business should analyze include similar products by competitors in order to discover ways in which it can outdo or outperform such companies.

The analysis of the other companies will inform the particular type of strategy the business will apply. For example, it might decide to apply the differentiation strategy whereby its own products will differ in some manner from the products that are already on the market, giving it an edge over the competition and that market. Another factor that can help a business attain market leadership is the application of proper competitive advantage whereby the business applies competitive principles as a means of breaking out of the pack. For instance, the business could streamline its production methods in such a manner that it will be able to offer consumers substantially lower prices for the same or even better quality items while still managing to profit from the sale of such low-priced goods.

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