Become the market leader

Become the market leader


In case you are the market leader, everybody else wants your market share so everyone is your enemy. Your career is to ruthlessly defend your territory. Should your enemies are smart, they will not attack head-on. Instead, they'll choose areas of weakness where you haven't defended yourself and exploit them to their own advantage. Slowly and gradually, they will swipe your customers, bring your share, disrupt your markets, watching in amusement since your resources are scattered fighting little distractions here and there. That's what attackers do. market leadership

Now because post is about market leadership, it is just fitting that we should start with the basics. Before we speak about what a leader has got to do, let's cover off why market leadership is really a big deal to begin with. All things considered, if you don't understand the price of the market leadership position, you will not appreciate why it's so important to fight to keep it.


The reason market leadership is very important is not the revenue (although that is certainly obviously very important). It is not the status to become the leader either (eventhough it does help build an ego). Why leadership is important is really because most customers choose to buy from leaders. Of course, you'll always get the fringe-dwellers that as some type of protest support the underdog but, on the whole, most customers prefer to deal with leaders.

So customers create market leaders. They perceive leaders to be better (otherwise why would they be leaders?) plus they perceive leaders becoming a safer purchase. Individuals are like sheep. If your majority votes you the best, the majority must be right. So they really buy from where everyone else buys, thus strengthening the leader's position.

It is hard for a challenger brand to dislodge market leader if the leader is actively defending territory. Time and resources have to be deployed to fight over a sustained time period. Not all challengers are in the position to attack for lengthy periods of time since it has a significant amount of resources so that you can relentlessly pursue a frontrunner. (It's fun though.)

But leaders usually are not invincible. Some get arrogant and complacent, a touch too big for their boots. They get depressed by internal issues like changes to senior management, or become a victim of regulatory interference, and this offers challengers a prompt opportunity to strike. Market leaders do slip to challenger position (and it's really a bit of a bumpy ride downwards). In the event that happens to you, you'll have to switch methods to become an attacker yourself.


Among the armory enjoyed by the leader are:

Greater resources to use in defending a niche territory.

Often leaders can outgun competitors on all fronts - outspending them in advertising, having bigger and more comprehensive distribution channels, enjoying higher brand profile, plus more.

Time to defend.

Since no-one listens to advertising anymore, a challenger's message could possibly get lost. This gives the best time to respond. An innovator usually hears competitive messages before most of the market does and outspends the challenger.

Distribution Channels favor industry Leader.

Shelf space can be a valuable commodity, and also the best positions favour the item that sells inside the greatest volume. Quite simply, it favors the marketplace leader. The same is true for distributors and third-party agents that need volume sales to earn commission.

Brand profile favors the Market Leader.

More people buy "known" brands than "unknown" ones since positive branding instills a perception of trust. Brand profile is essential since it is the mechanism employed by marketers to facilitate the selling process, and also the mechanism used by people to reduce their purchase risk.

Advance of barriers to market entry favor the marketplace Leader.

There are numerous ways in which a Market Leader can make it hard for competitors, which range from the use of legal instruments like patent protection (common inside the pharmaceutical and information technology industries) through development of market barriers like exclusive distribution contracts, exclusive supply contracts, restricted use of essential channels, market or government monopoly status or eliminating experienced staff through the market.

Using an Existing Customer base favors the Market Leader.

Creating a customer base is always a strategic advantage, specifically if you are closely attached to them. An established customer includes a relationship already using the brand, and has a level of confidence and have confidence in it that it will donrrrt you have in an untried brand. Strategies might be deployed to "lock down" a preexisting customer base, such as contracting which is common in the telecommunication industry.

How big the customer base favors the marketplace Leader.

Large customer bases enable you to use the size to your great advantage. Size offers critical mass. Cost advantages feature scale, including the opportunity to amortize cost across vast quantities. In addition, having a large client base reduces risk. Those businesses that depend on one or two key customers for his or her survival can find themselves within a risky position if one or both of those customers take their business elsewhere.


 A market leader always plays defense.

 They counter panic or anxiety attack with equal or greater force.

 They defend important markets.

 They remain vigilant in scanning for potential attackers. (What this means is they must assess the strength of each and every competitor and consider the support that the attacker might muster from allies.)

 They attack themselves before a competitor contains the opportunity to attack them.

Being the leader is the advantageous position. Playing defense is much easier than attacking when you have a greater chance of winning. However you can find key challenger brand advantages the leader needs to take into consideration. These advantages include:

 The sympathy vote.

 The regulatory framework.

 Psychological advantages.

 Challenger Brands are not by yourself.

 Challenger brand believability.

 Market leader complacency.

To effectively negate a challenger brand's competitive attacks, a niche leader's important territories have to be identified, defense plans laid, and techniques deployed, such as the coming of moving targets, securing fringes and niches, and pre-emptive strikes to contain competitive damage. market leadership