Although it may be hard to believe, Google, Amazon, and Apple were all small companies at one point, they, like many other conglomerates, started by operating in someone’s basement or a home-based office. After a few decades of growth the likes of which were never seen before, these companies now control some of the world’s largest markets. In reality, however, achieving this type of expansion will likely be impossible for new business. Nevertheless, what are some ways that start-up companies can be taken from minor ventures to market leaders within their industries?
In general, one of the easiest ways to establish dominance is to have a competitive advantage over the opposition. For example, a car producer that has cheap access to manufacturing parts will have a competitive advantage. Similarly, think about an online advertising agency that pays low fees for high-capacity internet. It will undoubtedly enable it to have a competitive advantage over those who must pay considerable costs for their data.
Therefore, brands should first look for ways to create a competitive advantage that enables them to take over the market. This is how Netflix was able to overthrow Blockbuster and how Walmart and Amazon put Toys ‘R’ Us out of business. Therefore, being better at something or having more resources will be the shortest route to maximizing one’s market share.
Great Customer Service
Naturally, people will seldom engage with companies that offer subpar customer service. It is because customers’ trust is almost impossible to gain twice. Thus, once it is lost, it is likely lost forever. Businesses must always do their best to satisfy the buyers to avoid such a scenario. The phrase “the customer is always right” certainly has an important meaning here.
Besides being very friendly and helpful to the buyers, companies that want to be the market leaders must be reliable. It means that their services or products can never fail to satisfy the consumers. Just think about the amount of negative publicity that businesses may face if their products are not working as promised. Also, being a reliable brand also means delivering on given promises. So, for instance, if a corporation like Apple plans an event that will introduce their latest iPhone, they should do their best to meet the said deadline.
Positive Reputation and Controlled Publicity
When Elon Musk, the CEO of Tesla, took part in a somewhat controversial radio podcast last month, the company’s shares plummeted. During the podcast, Musk engaged in certain activities that would be seen as questionable if he lacked his business status. So, when the corporation’s shares dropped, many investors were shocked by the speed at which their assets lost value. Well, according to the CEO of Send to News, Matthew Watson, this demonstrates the importance of positive publicity.
Whenever a company is affected by the negative news, it risks losing some of its value. In the long-run, this could make that company unable to reach the status of a market leader. Thus, it is crucial that businesses stay away from anything that could adversely impact their public image.
As expected, to become a leader in anything, one must expand at some point. It means increasing the area of operations and starting to sell product or services to more customers. To avoid falling under one’s weight, however, businesses must expand strategically. It could mean taking the necessary time to evaluate the best markets to move into. It also requires companies to hire the best talent that can facilitate an effortless expansion.
Lastly, every business needs to travel the thin line between horrendous undermining of their opponents and mindful competing. For instance, dropping the prices beyond what seems reasonable would be an example of undermining opponents. The reason why one should stay away from this approach are all the legal issues that could ensue. Instead, as Matthew Watson advises, organizations must find ways to compete ethically. This could include everything from reasonable drops in prices to better offering!