How Can a Company Grow Its Market Share?
The purpose of increasing the market share strategy is to greatly increase and continue to increase the market share of the enterprise. Therefore, this strategy generally requires companies to change their original competitive position. For example, the strategy would require a company with poor competitiveness to become a company with a moderate level of competition, or a company with a medium level of competition to become a market-leading company.
Increase share strategy
Right!
- Chinese name
- Increase share strategy
- Nature
- strategy
- Attributes
- Share
- Current enterprise
- increase]
- In general, market share will change at the beginning or rectification phase of the product-market development cycle. In these stages, the competitive basis of the industry often changes. At the same time, the product-market development stage of the industry often indicates the types of competitive advantages that companies may build. For example, at the development stage, the competitive basis of many industries is inseparable from product design, product positioning, and product quality. In the rectification stage, the industry's competitive foundation usually turns to product characteristics, market segmentation, positioning, sales and service effectiveness.
- Of course, even if companies understand these changes in the product-market stage, they still need a creative decision-making process to form an effective market share strategy. This is mainly because:
- 1. Even if companies know that there is a new basis for competition in the industry, they still need to be creative to find the best way to compete in these new areas. In other words, companies need to understand the product design, product positioning, and product characteristics required by the listing venues at these stages in order to compete better.
- 2. All the above-mentioned periodic changes are general changes and are not used in all industries. For example, the life of high-tech products is short, it grows fast in the market, and it decays fast. Generally, there is no rectification stage, mature stage and saturation stage. Therefore, when they are still in the initial stage of product-market development, their price, production capacity and sales channels are more important than product design and product quality.
- 3. If there are huge changes in the industry at these stages, it will also affect the growth rate of market share. For example, mistakes made by leading companies in the industry, major breakthroughs in product production technology, or companies' intention to make major investments will cause the company's market share to change significantly, and may even affect the competitive position of other stages of product-market development.
- In short, it is relatively easy for an enterprise to form a certain competitive advantage at certain stages of product-market development, but it must have a major competitive advantage over competitors in some respects in order to form a strategy to increase market share.