How To Increase The Market Share Of Your Business
As of 2015, the global market share was estimated to be $24.3 trillion (USD). A company’s market share is its portion of the market for a particular good or service. There are several factors that can affect your business’s market share; which, if you follow this guide on how to increase the market share of your business, you may be able to improve upon.
The first factor in determining your company’s success is location. Where do you operate? Is there a demand for your product/service where you operate? In order to determine whether or not there is demand for what it is you provide as a business, consider who your customer base will be and whether or not they have access to other types of businesses. If you provide a service and your customers have to travel to get it, they will be more likely to go with a company that is closed as opposed to one that is far away.
The next factor in determining the market share for a company is what sets your business apart from those around you. Although there are many other factors that affect this, such as customer demographics, government laws, etc., one of the most important factors is product/service differentiation. Is there anything particularly special about the way you do something? Maybe another company does something similar but not quite right or maybe there is no competition because no one else does what you do the way you do it.
Your business’s market share is also impacted by the business model. The easiest way to make money is to put yourself in a position where you are the only one doing something or there is very little competition. Do what you do best and get other people/companies who do well at certain things to complement your abilities. If there are many other companies all providing similar products/services, try to find one that does it better than them all and use them as a supplier while keeping your own business separate from theirs so they don’t realize how much you rely on them.
The next factor determining your company’s market share is being able to keep up with demand for your product/service while maintaining quality. Once again, this relies heavily on your business model. If you have managers with a bad work ethic in a position of high demand, this could cause a loss in market share because your product/service isn’t getting to your customer in the way it should be or it is being provided carelessly. Try to avoid situations like these by having people who are dedicated and willing to do what they can for their part of the business’s success.
After location, differentiation, and management come a price. In order to keep up with demand while maintaining quality, you will most likely need more people on staff or better equipment which means that you’ll need more money from somewhere. It may not always be possible to make a profit per unit sold but if you provide a product or service that people cannot get anywhere else, they will be willing to pay the price.
The last factor in determining market share is how much and what types of advertising you do. While there are many other factors that affect this as well such as government laws and customer demographics, it goes without saying that if you don’t tell people about your product/service, no one is going to know about it even if it has completely differentiating qualities or comes at a better price than similar products/services elsewhere. Make sure to do plenty of research on the best ways to advertise for your particular industry before spending more money than necessary on ads that won’t help bring in customers.
As of 2015, the global market share was estimated to be $24.3 trillion (USD). A company’s market share is its portion of the market for a particular good or service. There are several factors that can affect your business’s market share; which, if you follow this guide on how to increase the market share of…