Market Pioneer or Follower

Market Pioneer or Follower - 1 Market Pioneer/Follower:...

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1 Market Pioneer/Follower : Market leader has the largest market share in the relevant product market To remain dominant the leader must follow the following strategy: EXPANDING THE TOTAL MARKET DEFENDING THE MARKET SHARE EXPANDING THE MARKET SHARE 1) EXPANDING THE TOTAL MARKET – it can expand the market share by creating new customers , increasing the usage of the product , example of increasing product usage (Gillette Mac 3 has a blue strip which fades away with repeated use , indicating customer to buy a new one ) 2) DEFENDING THE MARKET SHARE – a dominant firm can use 6 defensive strategies: →position defence →flank defence →pre-emptive defence →counter offensive defence →mobile defence →contraction defence 3) EXPANDING THE MARKET SHARE – take an example of bharti airtel which was a good company in 2002 but since nine years company has don tremendously well and with the company great management and commitment toady bharti airtel has the leading market share in telecom industry in India
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This note was uploaded on 06/08/2011 for the course BUS 620 taught by Professor Aftad during the Spring '11 term at Alabama.

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Market Pioneer or Follower - 1 Market Pioneer/Follower:...

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