MANAGEMENT

Detailed explanation-1: -Higher market share can help improve sales when existing, brand-loyal customers buy more of a company’s products. Market share may also widen a company’s overall customer base as potential new customers follow the lead of existing ones. Gaining market share can strengthen and spotlight a company’s reputation.

Detailed explanation-2: -Market leaders possess strong prestige and brand value. Strong brand loyalty also enables them to not only retain existing customers but also attract new ones. A market leader also tends to be aware of the purchasing decisions made by its consumer base, owing to access to large datasets.

Detailed explanation-3: -The benefits of market leadership within a sector are well understood as market leadership confers many advantages. It allows companies to hire better talent, access lower cost of capital, secure volume price discounts, engage with partners on a preferential basis and ultimately consolidate the market.

Detailed explanation-4: -A market leader has a tendency of using its dominance to influence the direction which the market takes by winning over customer loyalty, pricing, distribution coverage, profit, image, among others. A market leader may be in the form of a brand, company or product.

Detailed explanation-5: -The significance of market share: Market share is a measure of the consumers’ preference for a product over other similar products. A higher market share usually means greater sales, lesser effort to sell more and a strong barrier to entry for other competitors.