Definition of Market Leader - Essay Example

Running Head: MARKET LEADER Market Leader of the of the Market Leader Introduction The term “Market Leader” refers to those companies and industries that accomplish a superseded place on the basis of their products and services which are adopted by majority of customers and become market standards. Three distinctive categories of companies transpire as leaders, and area that extricates them from their competitors is the way they deal with their consumers. They alter and shapes their future requirements and plans on the rationale of the feedback of their customers.

Their decisions in favor of customers bring the colours of success in the organization. Discussion There are three major types of Market Leaders. Market leaders that are concentrated highly on operational brilliance comes under the first category. Wal-Mart is the best example of a company that focuses more on its operational excellance. It is a company devoted to provide low to reasonable prices with high class services. Corporations that zilch in on product leadership comes under the second category of Market Leaders.

Firms like Intel, Microsoft, and Nike deals with the finest products in their target markets and continue to improvise their originality to keep themselves on top of their competitors every year (Delery, Doty, 1996, 802). Customer intimacy is another tool to attain a top ranking in the market. Firms that emphasize on customer intimacy works exhaustly to provide best possible solutions to their customers on. Nordstrom is a worthy example of a company whose business works over the concept of customer intimacy.

Market leaders gets many advantages due to their huge market share that their competitors can only dream of. They generally get premium price for their products due to their brand strength. They enjoy lower product costs, longer product cycle and smaller sales cycle due to market responsiveness to their product lines. On the other side, All customers do not have high purchasing power, therefore market leaders’ product lines faces increased amount of market threats. Makrket leaders have to update their products on frequent basis to counter with piracy and their competitors.

This approach enable them to turn their threats into opportunites like HTC and Acer have always worked under an inspiring brand name and using White products to keep their hold as a market leader (Delery, Doty, 1996, 802). In short, the true image for leadership intiates with the plan of a compatible design, which maybe completely unlocked primarily or at a later stage. This is one of the way a company can cherish and rouse a system of complementors which are fascinated by the compatibility of the products and services with their own solution.

Conclusion In conclusion, we can say that it is critical for the market leader to uphold a competitive threshold in the capacities of customer intimacy, operational efficiencies and product quality. But no corporation can flourish today by providing all options and facilities to every one. As an alternative, these market leaders have systematized themselves to attain exceptional performance in only one capacity while continuing to be modest in the other two areas. Market leaders must be exceptional in price, product and services to appeal customers by keeping their operations super simple.

There is no chance, a market leader can unfastened the emphasis on a high-profit functions. They face huge difficulties while keeping themselves at top as it demands aggressive efforts to be always a customer’s preferred choice.Also, to be a market leader, there occurs a profounder conviction that yields higer commitments, concern, superiority, and ownership. These powers are the stimulating aspects of a company’s visioning process and their prominence can never be inflated. References Delery, J.E. and Doty, D.H. (1996), "Modes of theorizing in strategic human resource management: tests of universalistic, contingency and configurational performance predictions", Academy of Management Journal, Vol. 39 No. 4, pp. 802-35. Running Head: PORTER MODEL Porter 5 Forces Model [Name of the Writer] [Name of the Institution] Porter 5 Forces Model Introduction Improvement of a marketing approach of a business has to be based principally on the outcomes of the exploration of business.

The finest recognized context for the analysis of organizational structures of firms and businesses, Five modest forces model presented by Michael Porter, is used to identify the growth process of a firm for its sustainable competitive advantage. Wal-Mart is the third largest U.K. supermarket operators that has a global presence as a market leader with leading chain of home, departmental and super stores. Porter’s five forces model is a basic representation for the identification of firms’s profitability and competitive advantage.

It is a model that is appreciated not only by financial tycoons but also by small business sectors. Taking into account the modern underlying forces and impulsiveness of tempestuous market circumstances, Porter Five forces model is one that will assuredly last to be a one key tool in strategic analysis of different firms and business unrelatedly to their size. Discussion The supermarket operators industry is the crux of its strategic conduct and the important element for their success is their sustainable competitive advantage (Thomas, Sullivan, 2005, 239).

Porter's Five Force Analysis model lists five main areas that firms analyzes for identifying a firms’s position in the market. The five forces are 1. Threat of Entrants 2. Threat of substitutes 3. Power of buyers 4. Power of suppliers, 5. Competitive rivalry To have a competitive advantage for Wal-Mart implies that it emphasizes to attain a favorable place in market among their competitors. This may yield some industry rivals for that firm but on the other side may result in increased market participants by improved setting.

Therefore, an enterprise should be well aware of its surroundings, specifically from the other businesses of the areas to which it also belongs. Therefore, advancement of proper marketing strategies of companies must be based on the outcomes of the analysis of firms’ structure. Each of the forces from the model is indomitable by organizational individualities and their shared power governs revenue prospective of businesses. The interpretation of the porter five forces model define the desirability of supermarket operators that measure the sensitivity of the strength of porter five competitive forces as well as identifies variances between the apparent power of distinct forces along with prevailing competitive advantages and significant accomplishment factors in the added growth of Wal-Mart.

Conclusion In conclusion, we can say that Porter five competitive forces analysis is required to comprehend the actual strengths and weaknesses of applicable marketing strategies that are build on a framework for placing the superstore within the respective postion.Competitive forces do not demonstrate only the variations in the environment, but grounds of these variations are also highlighted through its review. Therefore, it is significant to recognize the association between competing forces and reasons of fundamental deviations in a specific business and Porter five forces model helps every company to accomplish this objective.

References Thomas, J.S. & Sullivan, U.Y. (2005). Managing marketing Competwtive Advantages with multichannel customers. Journal of Marketing, 69, p. 239-251. Running Head: SEGMENTATION Segmentation, Targeting, Positioning And Repositioning [Name of the Writer] [Name of the Institution] Segmentation, Targeting, Positioning And Repositioning Introduction The world is comprises of many diversified consumers, each having their own requirements and conducts. Companies can reveal new segments by examining the order of traits that customers will cogitate when selecting a product.

Marketing segmentation, targeting, positioning and repositioning approaches can be refined through a general selection of features formed among consumers. Discussion There are number of ways in which a market can be segmented, targeted and positioned. An organization will need to use the right strategy that is best for it products or services for attaining a strong position in market. Often, the best choice arises from using various strategies, the perception of cultural differences in today's global market could be the key for any organization's success.

As a result, every organization will need to shape their marketing strategies to their consumer's buying habits. Segmentation Segmentation pursues to accompaniment consumers with products that content their individual traditional requirements and conduct forms. Grouping of people, areas and organzaition on the basis of their needs, characteristics and behavioursis generally known as segmentation. Subsets of market are defined by the company to better identify their customers needs be analyzing factors like age, income, gender and other characteristics of that subset.

The segmets can be based on geographi and demographic basis or geodemographic that combines the lifestyle of both the segmentations can be used for this purpose. If segmentation is done seamlessly, highest profit and return can be ensured by the company. Firms then shapes their products as per their segmentation characteristics. An example of Toyota can be considered as Toyota has offered its different vehicles like Lexus, Camry and Corolla on the basis of its segmentation identification. Toyota Lexus is designed for high end customers where Camry for middle and Corollar for the low end.

Another segmentation example is of Nivea that is one of the international leading skin care brand of Beiersdorf. Nivea has divided its market in various segments on the basis of its different marketing activities. Each segment defined by Nivea is based on cutomers that have same tastes and needs like kin type of Normal, oily and dry etc. and which are satisfied by the use of Nivea products as per Nivea’s segmentation. Targeting Targeting a market implicates focusing your efforts on specific segments that are relevant to your services and products and excluding those segments from your focus, which do not provide you better profit and customers.

Customers plays a significant role in every business success. Almost every firm projects are proposed with the key target of customer retention and constant customer acquisition to maintain and increase profitibilty. A vital objective of every business is to attain and retain customers through every means and ways. As this approach would necessitate a very targeted customer acquisition plan, retaining of employees would be advanced, therefore positioning less burden on evolving a complicated retention approach.

The appropriate targeting would entail a fine advanced system to target the precise market and demonstrate it to safeguard that enthusiasm levels did not transform affectedly. Procter and Gamble sells various brands witin a similar product classification. Each product manufactured by P&G pertains to a different segments and targeted some specific segments on the basis of tcutomers’ charateristics. Tide is one of their product that offers seven different kinds of formations that targets different niche needs of different segments.

Postioning and Repositioning The concept of Positioning in marketing defines marketing strategies thorugh which an image of a product or service is created in the minds of target market where as if the perception of an existing product or service is altererd in the minds of target market due to other products in competition is known as repositioning. Companies positions and repositions their products as per their competitors changes their products. To the extent that companies are able to target a precise segment and position their products and services, there will be much more likely to have satisfied customers.

Clearly, a highly motivated, highly able customers would not like to be geared to a predominant market population from the low inspiration, low aptitude segment. A mix of these two segments sometimes may create a difficult environment for the companies to fill all their customer’s needs and perhaps ends up filling none. The most general strategy for the positioning and repositioning of a brand is to use Advertising, which is used to create a product perception in customer’s mind. Head & Shoulder is a product of P& G that is specifically made for dandruff issues therefore, it is always advertised with keeping the concept of a dandruff free hair and most of the times, it is focused on men as dandruff is found to be a major issues with men.

Using postioning strategies, comapnies could maximize customer satisfaction by ensuring that they targeted a particular market segment, based on the combination of inspiration and aptitude levels, and then positioned their products to precisely fit the needs of the segment (Farrell, Saloner, 2005, 70). The appropriate targeting and positioning would involve a well developed system to target the correct audience that allow them to guarantee that inspiration levels did not modified radically. Conclusion Based on the customer satisfaction literature in marketing, in conclusion, it can be suggested for corporations to embrace an approach to target explicit customer segments in the marketplace with effective positioning strategies.

Proper segmentation and targeting will guarantee a product geared precisely for the suitable target segment and appropriate postioning and repositioning strategies will upsurge customers pleasure levels, as they will get exactly what they want. It will also decrease customers discontent, and negative word of mouth, thus possibly accumulative profits. References Farrell, J. and Saloner, G. (2005) 'Standardization, Compatibility, and Innovation', RAND Journal of Economics, 16:1, 70-83. Running Head: ANTICOMPETITIVE PRACTICES Anticompetitive Practices [Name of the Writer] [Name of the Institution] Anticompetitive Practices Introduction In the debates of competition policy, Anticompetitive practices have gasped a signicant attention in recent years.

In 2004 after subsequent significant reforms on Article 81 and merger control, discussion was opened on the enforcement of Article 82 (Farrell, 2005, 70) which remembrances equivalent reforms in the preceding years, breaks on an additional extensive use of the new conclusions of economic analysis in the implementation against unilateral and anticomeptivie practices. A report and a discussion paper was submitted by economic advisors of the Chief Economist in 2005 which entitled some shared elements and identified some differences that became the rationale for a new strategic approach to the enforcement of Article 82.

1(Farrell, 2005, 71). The overall debate on the process has originated a composed thorough analysis of the diversified performs, viewing a profounder usage of the economic conclusions that can be interpreted into strategies and procedures of examination valuable to the market specialists and the firms. Discussion The traditional method tacitly based on an overgeneralized economic examination. In various cases, irt is found that the firms are inclined to reflect the humble acceptance of definite performs to be anticompetitive: this ‘form-based’ method projected to recognize an assumed behavior by beholding at its proper features and to evaluate governance, without ingoing into more expressed influences or investigations.

Smearing the economic analysis, it can well improve the examination by picking those observed discoveries that sustenance one description over the other that permit to resolve the fundamental credentials difficulties. The AA5 unlocked an inquiry of RDB, a medium-sized company energetic in the construction materials business in December 2005. RDB deals with a complete set of solid equipment including aerated autoclaved concrete (AAC), which is formed in the subsidiary RDB Hebel SpA (RDBH), owned and controlled by RDB (51 percent) and Xella (44 percent), using a licence of the latter German corporation.

Xella, which is a part of Haniel group, one of the largest companies in the industry, which also conducts business in Italy is controlled by Xella Italia, directly selling AAC mainly in the areas of north side. In 2006, RDB’s and RDBH’s sales turnover was around E 208 million and E 28 million. In the AAC market (and in the market for concrete products at large), each producer operates through a distribution network of retail agents that interact with clients and exchange the profitable situations.

In some parts, the customers are largely resellers that contract with the individual homebuilding inventiveness, whereas in other circumstances, the mediators unswervingly convert with the construction companies vigorous in the extent. The market process is therefore totally dispersed and the saleable rapports are set customer by customer. Conclusion In short, the anticompetitive and competitive stories must be brought out in facet, choosing from the economic analysis models that greatest fit the market environment and the firms’ faces.

The RDB case denotes to a submarket of construction materials and the commercial approach of a overriding firm, RDB, in central Italy, where the prey is proven. The latter contended that in 2005, RDB had accepted a wary and destructive pricing approach to deduct its customers and force them to walk out. The Italian Authority in the conclusion grants a random debate of the theoretic foundations of the circumstance, with a common orientation to discerning price punctures, but it does not investigate at all any substitute competitive clarification.

As a significance study, it is not identified that whether the observed predictions permit for distinguishing the destructiveness from the competitive performance. The Expert, in its place, achieved a very rich realistic analysis of the case, with a statistical and econometric analysis of all the invoices that RDB delivered during the year, demanding that the indication demonstrated the anticompetitive commitment and consequences of the preparation. References Farrell, J. and Saloner, G. (2005) 'Standardization, Compatibility, and Innovation', RAND Journal of Economics, 16:1, 70-83.