Businesses rise market share by innovation, strengthening customer relationships, smart hiring practices, and acquiring rivals. However, what is market share?
Market Share is calculated by measuring the percentage of sales or percentage of a company’s units in the overall market.
Furthermore, a higher market is advantageous for companies as businesses with high market share often receive better suppliers’ prices. As a result, larger order volumes raise their buying power.
As we already mentioned, innovation is one method by which a company may increase its market share. For example, suppose a business offers new technology to its customers. In that case, when a firm has to market a new technology, clients wishing to own the technology buy it from that company, even if they previously did business with a rival. Many of those customers become loyal customers. Therefore, the company’s market share increases, while the firm’s market share from which they switched declines.
Word of mouth strategy helps business to increase market share
Significantly, by strengthening customer relationships, businesses are trying to keep customers and protect their market share. Furthermore, some companies can increase market share via word of mouth. There is a big probability that customers who have a positive experience with your company will advise your company to friends. Therefore, their friend becomes new customers. The strategy boosts the company’s revenues without further rises in marketing expenses.
It is a well-known fact that companies with the highest market share have the most skilled and dedicated employees. When a company has the best employees on board, it reduces expenses linked to turnover and training.
To have skilled workers, the company has to offer competitive salaries and benefits to an employee. However, workers in the 21st century also seek immaterial benefits, for example, flexible schedules and casual work environments.
Additionally, another method to boost market share is acquiring a competitor. By doing so, an organization achieves two things. It penetrates the newly acquired firm’s existing customer base, and it decreases the number of firms competing for profit.