A market leader must utilize strategies, such as marketing its products locally and globally through ads that are customized for each domestic market, to grow its market share and brand recognition. A market leader can introduce competing products into the market to prevent competitors from penetrating the same market.Continue Reading
Other viable strategies for a market leader include managing costs efficiently, because fewer costs lead to higher profits. It can develop innovative products for its smaller market segments, which are usually ignored by most market leaders, to keep it ahead of the competition.
A market leader can increase its market share by exploring innovative distribution channels and securing them from competitors. Its innovative advertising campaigns must be backed by increased value for its customers to further secure its market share. In some cases, a company may realize that it has over-extended its resources and decide to reduce its market share. It can do this by hiking prices, eliminating promotions and reducing the level of customer service for specific products.
A market leader must maintain a stable cash flow as it expands to ensure normal operations are not disrupted. A market leader can reduce its risk exposure by engaging in public relations initiatives and creating better relationships with competitors and the government.Learn more about Business Resources