Market share and growth of the latter compared to the evolution of these various competitors are fundamental to business performance.
Companies can be classified
Leaders ( and co-leaders ) market . The dominant position of general , occupying a strong market share usually provides good profitability . It often allows both to amortize the cost of large quantities ( economies of scale) , and set prices providing a large margin because of the reputation and market presence .
Followers. This marginal player position is very delicate. It usually leads to poor profitability and can threaten the very survival of the business.
Specialists , occupying a single market niche . A small business can flourish if it is a policy based on a narrow target range of products and the type of customer excellence.
This explains the strategies more or less long-term occupation of the markets, and also that the current operational level, the market share is one of the key figures of any marketing plan objectives.
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