Market share is the percentage of the market controlled by a particular service, product or company. For, every business, the end goal in mind is to increase its market shares. It is very important for a business to be able to do so in order to measure the particular growth of the business in due time. This method of measurement is preferred since it doesn’t rely much on macroeconomics and factors exterior to the business. With the attainment of set market share, the company then strives to maintain that particular market share. There are several ways, which the company can be able to maintain its market share in the case of a new competitor. The first method is through market fortification.
This is basically filling the market gaps that were once not considered relevant by increasing different products for different clients’ needs. This helps in keeping the customers close from a variety of products readily and newly available. The limitation of this however is the fact that more products call for more attention and more care, especially in the case of a pharmacy. The expenses incurred on this might trickle down a long way into the profits.
Another means may be the confrontation strategy where the major market may indulge in price-cutting, promotions and discounts to teach the newbie competitors a lesson. This is a method that definitely does the trick on maintaining market share of a particular company. However helpful it might be, it may resort to harassment like in the case of pressing suppliers not to do business with the competitor to avoid losing its goodwill. Also, it contributes very little to social welfare and integrity of business. Another means might be through product innovation. Introducing of new products to the company is a splendid way to remain relevant. It is wise to be able to move as the market does: introducing new products that will make clients remain in the company.
However, it is very expensive.