A market leader is the Microsoft –

firm which has the largest Computer

market share in an Software
industry. It usually leads
other firm in price • A market leader
changes, new product should have
introduction , distribution capacity to
coverage and promotion Coca-Cola Kodak – dominate other
activities. It has a better Photography competitors
resources, well
– soft drink and should lead
management, advanced the industry. It
technology and control should be able
over the large market to remain
share. Some of the best- number one in
known market leaders of the market
the world are :
For this
market
leader
must
follow
market
leader
strategies.
 Market Expansion strategy
Market Expansion Strategy is one of the major strategies of
the market leader . This strategy is used to remain number
one in the industry.
New uses: In order to More usage: In order to
expand the market, the expand the market, the
market leader must add market leader must
new user to the product. It encourage the customer
is the strategy of adding the for more usage of the
new product performance product. For this market
to the existing one. leader must convince the
customers by providing
them direct and indirect
additional benefits. It can
be done through sales
promotion.
New Users: In order to
expand the market, the
market leader must attract
new user or new customer.
It creates the demand.
Market leader can attract
new users by using new
market segment. Strategy :
Market penetration
strategy and Geographical
Expansion strategy
 Position defense : It is a strategy to defend the market from competitors through
strengthening the product images in the eyes of the customers. It is used to create
the brand loyalty. Under this a firm takes advantage of its image and its brand’s
image in the market. Attackers often launch product in the same positions.

Preemptive Defense: Preemptive defense is the strategy of attacking the

competitors before the competitors attack the firm. It is a precaution
strategy- selective price cut, intense promotional blitzes, occasional legal
action or unusual propaganda are used for preemptive defense.

Mobile defense: It is a strategy of a market leader to grab mass market. It is a strategy

to serve small segments that other firms overlook or ignore. It can be of two types:
Market broadening
Market diversification
Cost: The cost of increasing market share
should not exceed its benefits.

Profit: Profit of the firm should be increased

through the market share expansion

Legal restriction: While expanding its market share the firm may
face the legal restriction For example: Microsoft company faced
legal action during the market share expansion.