What are the qualities of a market leader ?
Market leadership commonly refers to the status of a certain company within a market or industry, based on four aspects. In determining whether a corporation is a market leader, the profitability of the company plays a vital role and must be considered. Along with the profit of the company, factors such as market value and volume are considered as well. The company’s profitability also needs to be consistent from a certain financial period to the next.
The profit level should be significant and represent substantial share of the available market. If a company is capable of sustaining the profitability through swings in general economy and changes within market sector, the level of stability is one great indicator of market leadership.
Market share is vital to market share two factors. The issue of market share volume plays like the profitability, meaning that the volume of market share does not have to be the highest but consistent. A consistent strong position will show the capabilities of the company to appeal to the market even under economy changes, and this is one characteristic of a market leader.
Along with volume, a company that displays great values for their share of the market ids a market leader quality. The services and goods produced by a certain corporation with market leadership attributes have firm reputation for high quality. This means that market leaders produces goods that encourages confidence of consumers and with prices consumer find affordable.
Nowadays, a new indicator for determining market leaders emerges. A company being a market leader is distinguished by the stability and quality of its executive members and management team. This case usually happens when the corporation’s leadership is made of professionals who have been with the company for a long time and have records of leading the company successfully through economy change.
