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Definition of Market Leader - Essay Example
Author : josiahjohns
Pages 2 (502 words)
The term “Market Leader” refers to those companies and industries that accomplish a superseded place on the basis of their products and services which are adopted by majority of customers and become market standards…
There are three major types of Market Leaders. Market leaders that are concentrated highly on operational brilliance comes under the first category. Wal-Mart is the best example of a company that focuses more on its operational excellance. It is a company devoted to provide low to reasonable prices with high class services. Corporations that zilch in on product leadership comes under the second category of Market Leaders. Firms like Intel, Microsoft, and Nike deals with the finest products in their target markets and continue to improvise their originality to keep themselves on top of their competitors every year (Delery, Doty, 1996, 802). Customer intimacy is another tool to attain a top ranking in the market. Firms that emphasize on customer intimacy works exhaustly to provide best possible solutions to their customers on. Nordstrom is a worthy example of a company whose business works over the concept of customer intimacy. Market leaders gets many advantages due to their huge market share that their competitors can only dream of. They generally get premium price for their products due to their brand strength. They enjoy lower product costs, longer product cycle and smaller sales cycle due to market responsiveness to their product lines. On the other side, All customers do not have high purchasing power, therefore market leaders’ product lines faces increased amount of market threats. Makrket leaders have to update their products on frequent basis to counter with piracy and their competitors.