A market leader is a brand, product, or a firm that has the largest percentage of total sales in terms of revenue (the market share) of a market. A market leader often dominates all his competitors in areas such as: customer loyalty, distribution coverage, image, perceived value, price, profit, and promotional spending. To be the leader in the market, the company needs to be innovative, agile, revolutionary, obsessive and supportive. Market leader objectives are to continue expanding their total market by finding more new consumers to purchase their product, creating new uses for the current product which they are selling, and to encourage more usage among the current consumers. A market leader should always be equipped with a defense strategy that will help defend against any new threats that might threaten their position as a market leader. Also, another objective to achieve is to keep increase their market share of their product. An example of market leaders are: Coco-Cola (soft drinks), McDonald’s (fast food), Caterpillar (large construction equipment), Kodak (photographic film), Wal-Mart (retailing), and Boeing (aircraft). Market Challenger
Market challengers are runner-up companies that aggressively attack competitors to get more market share. A market challenger’s strategic objective is to topple down the current market leader and to take over its place.
A market challenger will always strive to attack the current market leader, or other firms that matches its own size, or smaller and local regional competitors in hope to be the leader in the product or service which they are offering. In essence the challenger has three strategic alternatives that are available to the company: (a) a direct or head-on attack using either cost/price/value for money as the key strategic variable; (b) an indirect or flanking approach using product differentiation or promotional activities as a way to win consumer’s preference and loyalty; and (c) a by-pass strategy based upon radical innovation through which the challenger seeks to change existing purchasing behavior in favor of a new solution to basic consumer needs.
Such examples are like Adidas attempting to beat Nike or Burger King attempting to challenge McDonald’s position as the market leader. Market Follower
Market follower are firms that attempt to use strategies to seek stable market shares and to gain profits by following competitors’ product offers, prices, and also marketing programs.
Market followers attempt to create a similar to product that is innovative to be sold at a cheaper price comparing to the company who has that similar product. A market follower has many advantages also. A market follower can learn from the market leader’s experience and copy or improve on the leader’s product and programs, normally with much lesser investment compared with the market leader.
One such example would be the recent new colors for the Sony’s Vaio Laptops. Once Sony releases their new color design, Dell later would follow in it and would have their personalized laptop colors which could be chosen when purchasing a laptop from Dell. Niche Market
A niche market is often portrait as a focused, targetable portion of a market. By definition, then, a business that focuses on a niche market is addressing the need for a product or service that is not being addressed by the mainstream providers. Niche market can be thought as a narrowly defined group of potential customers. For instance, instead of offering cleaning services, a business might establish a niche market by specializing in blind cleaning services. Why should you bother to establish a niche market? Because of the great advantage of being alone there; other small businesses may not be aware of your particular niche market, and large businesses won't want to bother with it. The trick to capitalizing on a niche market is to find or develop a market niche that has customers who are...