You may find industries dominated by only one firm. The largest share of the market is occupied by the said firm and is known as the market leader. The other firms operating in the said market enjoy only a relatively small portion of the total market. They are always under pressure by the leader because…
Market challengers are the firms trying to catch the leader’s position and fighting hard to increase their market shares. They are called challengers because they throw direct challenges to the leader by penetrating his market domain. The challenging firms that fail to penetrate the leader’s areas become market followers. Therefore, it is evident that some…
What is Market Niche Strategy? A niche is a small market whose needs are not being well-served by the existing products. A niche may be identified by dividing a segment into sub-segments or defining a group with a different set of characteristics, which may look for a special combination of benefits of attributes in the…
It is now a common practice in marketing to follow the leader rather than challenge him. While deciding to follow the leader, the follower should keep in mind that the leader will not let this go unchallenged. If the follower offers a lower price, the leader may cut the price further. The leader may also…