Market Leader

What is the Market Leader?

Market leader refers to a company holding the largest market share in an Industry. The company might use its dominance to impact the landscape and direction in a market. In other words, it experiences the joy of having the largest market share or the largest percentage of the total sales-specific market. Its success might surpass that of its competitors even with regard to brand loyalty, coverage of distribution, price, spending on promotions, profit, and image.

A market leader company might be the first one to develop a particular product or service. This aspect would actually give it the power to define the product characteristics, decide the tone of the product, etc. Examples of market leaders are Amazon and Apple.

Market Leader Strategies

For the company to become a market leader it might have to be the first to offer a specific product or service, which must be good enough to attract a consumer base. A company might need to keep consumer satisfaction as its top priority to maintain market leadership.

Competitors seeking market leadership in the specific product might have to invest heavily in research and development. They might also require consumer information in order to improve the already existing product.

When a company has a hold on the market by being the first to introduce a particular product and service, they may be able to leverage the Economy to control market prices. According to a report, consumers trust market leaders and choose to reduce the risk by purchasing from market leaders.

Market leaders also attract the highest quality partners for development and are most likely to be innovating adapting to technologies and processes that will help them best their competition.

Market Leader Example

If a company wants to maintain a dominant market share with regards to a product or service their main focus will be to build brand loyalty and get new customers to buy from their brand. The company might attract customers by using quality and price in its right sense. Some of the examples of market leaders are Google, Facebook, Apple and Amazon.