Are you a business with enormous potential and want to make your next big move? Focus on increasing your market share as the benefits will win you over like nothing else will.
If you’re a business with a lot of potential, a strategically justified marketing mix (4 Ps: product, price, place, promotion), optimum levels of revenue, and a quality leadership establishment, increasing your market share should be your next target if you want to reach new avenues of success.
Additionally, if you begin executing this plan according to basic, two well-performed analyses that include,
- SWOT (Strengths, Weaknesses, Opportunities, Threats)
- PESTEL (Political, Economic, Social, Technological, Environmental, and Legal)
then be sure to be reaping the following benefits upon increasing your market share:
Barriers To Entry
Increasing market share means becoming one of the industry leaders. That lets you raise high barriers to entry for new businesses and existing competitors to grow their impact. When you create these entry barriers, in a way, you’re effortlessly halting the competition increase while enjoying a premium position in the market.
As mentioned above, a high market share makes you an industry leader. Being an industry leader means you may have a huge say in setting the price for a product dictating your competitors to determine their product pricing considering yours, instead of what benefits them. Furthermore, leadership in the industry allows you to set and maneuver trends while others may have no other option but to follow suit.
High Negotiation Power
When you occupy a significantly high marketing share and constantly increase it, all eyes are set on you. That enables you to enjoy a high negotiation power with your suppliers and distributors, and other key industry stakeholders. Having a large market share gives you the privilege to do many things on your terms while also being on the controlling end.
Occupying a large chunk of the market earns you a prestigious reputation and goodwill from your customers and other industry stakeholders. It sets a strong perception of your brand in your customers’ minds and end consumers as “the best.” As a result, they’d always buy from you instead of your competitors no matter how good their offering is.
Similarly, industry leaders and stakeholders will hold a good impression of your business, and you’ll be setting benchmarks for others.
Economies Of Scale
If you manage to conquer the market through a strategic approach, then your business is sure to enjoy economies of scale. A high market share means a broader customer base and increases revenues, and thus, increased profitability. All that means that you’ll enjoy a cost advantage amongst your competitors as your production costs would be significantly lower than theirs.
The Bottom Line
If you’re a business with ample resources, a team of fine leaders having operational expertise, a good understanding of business trends coupled with a thorough strategic plan, then your next aim is a higher market share. You’ll see your business going places.