What Are The Traits And Characteristics Of A Market Leader?
Leading a market is the ultimate goal when it comes to business. The position is very difficult to attain but the rewards can be monumental if you’re able to survive the journey.
Modern examples include corporations such as Apple, Amazon and Microsoft – perhaps the most well-known companies in the world today. But what is a market leader, how do they reach the summit, and which characteristics have helped them to pole position?
What is a market leader?
A market leader can be broadly defined as the company in a particular industry or segment with the largest market share, or the majority percentage of total sales. Market leaders are able to leverage their position to generate significant amounts of brand loyalty and economies of scale – boosting their profitability massively.
However, the journey to becoming a market leader isn’t an easy one. Tremendous amounts of investment are needed for research and development in the early stages and marketing and operational efforts at every stage.
But once a business reaches the market leader position, they are better able to influence and shape the market beneath them – further maintaining its stature in a particular space. So, what are the key characteristics of a market leader?
Many of the most successful companies in the world today are intensely customer-driven. This means that the customer has been at the forefront of their strategy from day one.
Jeff Bezos started Amazon as a digital book store from his garage, where he offered customers a quick and easy way to source books without having to go to their local library.
The company operated at extremely low profitability levels for many years because Bezos was focused on building customer loyalty and passing the value on to them rather than himself. Now, the company is one of the most successful in the world and profitability has followed after years of barely breaking even and near failure.
Being customer-focused is more than just building brand loyalty though. It’s about designing products and services to make a difference in people’s lives and continuing to shape these offerings in line with what is required or asked for.
Vista Global are the market leader in private aviation, largely because of its commitment to offering value and convenience to its clients. Simple booking methods, networks spanning over the globe, and tailored services mean that clients are never less than satisfied.
Vision and Strategy
Market leaders look beyond today to imagine the world in the future and how they can play a pivotal part in that future. This is how companies like Apple have been able to shape the future of the technology industry and maintain such a strong market position. Strategy is a fundamental component in all areas of business, from recruitment to marketing and all things in between.
A clear vision and mission statement attract employees and customers alike, creating an almost unstoppable force if done well. Elon Musk has done a fantastic job of generating demand for Tesla vehicles through his vision of a more sustainable future, in which EVs play a fundamental role.