14 Explain reasons why a business would want to increase its market share

[Sir Afzal Shad]

14 Explain reasons why a business would want to increase its market share [3]

[Shaliza khawaja]

To sell more products, strengthen its position against competitors
for example smartphone might want t capture a large market share by launching new product
increasing market share can increase sales and give a stronger brand reputation, having a strong market share also makes you a trend settler.

[Subhan Zafar]

{KN}A business would want to increase its market share because it helps to strengthen its competitive position and improve profitability within the industry.
{APP}For example, if Pepsi Pakistan increases its market share against Coca-Cola by launching new flavours or promotions, it means a larger proportion of total soft drink sales now belong to Pepsi.A higher market share can give a business greater brand recognition and customer loyalty, making it harder for competitors to take away customers.
{AN}It can also lead to economies of scale as production increases, average costs fall, allowing the business to earn higher profits or offer lower prices to attract even more customers.

[Naveen fatima]

[KN] A business would want to increase its market share to strengthen its position in the market.
[APP] For example, A smartphone company gaining a higher share of total sales can compete better against rivals like Samsung or apple.
[AN] A larger market share can increase customer loyalty, as the brand becomes more trusted. It can also gives the business more power over prices, helping to raise profits. Finally, it can create economies of scale, reducing costs per unit and improving competitiveness.

[Muaz Aamir]

KN: A business wants to increase its market share so it can become stronger and stand out more against its competitors.

AP: For example, Pepsi often tries to increase its share in the soft drink market to compete better with Coca-Cola and reach more customers.

AN: When a business has a bigger market share, it can make more sales and earn higher profits. It can also produce goods more cheaply because of bulk buying and better efficiency.

[Abdul Hadi]

KN: increase in the market share is the percentage of total sales in the industry made by one business increasing it means that the business is expanding and capturing a larger portion of the market.
APP: For example coca-cola aims to increase its market share in the soft drink industry in order to stay ahead of it's competitor Pepsi.
AN: A stronger market share means that the brand has a stronger customer loyalty as more consumers prefer the brand over its competitor, is can also lead to economies of scale since producing and selling more allows the business to reduce per cist of the product, additionally a dominant market position allows the business to have more power over pricing and suppliers which allows the business to improve long term profits

[shamaim shakeel]

Knowledge Point:
A business would want to increase its market share to strengthen its position in the market and gain more control over competitors.

Application:
For example, Sapphire in Pakistan may try to increase its market share by introducing new clothing collections and improving its customer service to attract more buyers.

Analysis:
As market share increases, the business gets more customers and higher sales, which improves brand visibility. With a stronger reputation, the company can charge better prices and still keep loyal customers. This longgrowth helps the business earn higher profits and stay ahead of its competition.

[sikander ali]

[KN]for increasing consumer base and become stronger against competitors.
[APP]for instance a fashion designer aims for increasing market share to compete with the other designers.
[AN]thus this would lead to increase in sales which would increase customer loyalty as good quality product which would further lead to increase profit margins.

[Shuraim Arif]

(KN) Businesses may want to increase market share to strengthen their position against competitors.
(APP) For example, a new, small grocery store may want to increase their market share by setting lower prices, attracting a loyal consumer base and then take over a competitor. This would lead to the grocery store becoming prominent in the market with a larger market share.
(AN) Once customers are loyal and a large market share has been captured, businesses have a huge competitive edge over the market and charge higher prices since it now has a better brand image and the higher prices may give a premium products feeling to customers.

[Wahaj Ashraf]

[KN] To get an upper hand from the competitors.
[APP]e.g. A smartphone company may lower prices or improve features to attract more customers and take sales from rivals thus helping the business increase its market share.
[AN] Thus by increased market share the business can benefit from higher sales stronger brand recognition and more influence over the market which will lead to greater long-term profitability.

[Tuqwa]

kn:Increasing market share means gaining a larger percentage of total sales in the market compared to competitors.
app:forexample a smartphone company may aim to attract more customers from rival brands through promotions or better features increasing its share of total sales.
an:this can improve brand recognition and give more control over pricing leading to higher profits and stronger competitive power.

[EmmanWaseem]

In order to increase the revenue
For example, an establishment supermarket that has a strong brand image will focus on increasing the revenue which will further increase the market share
This will increase the good reputation of the businesses

[Fatima ibtehaj]

[KN]Higher sales and profit
[APP]If a smartphone company like Samsung increases its market share, it can negotiate better deals with component suppliers and spend more on advertising which can lead towards higher profit margins
[AN]This can lead to economies of scale and hence lower costs allow the firm to either reduce prices to attract more customers or keep prices stable and enjoy higher profit margins

[Aarib Saad]

(KN)In order to prevent more competitors from entering the market.
(APP)For instance, the fast food industry is difficult to enter into as Fast Food giants like McDonalds and KFC are dominating the market.
(AN)Thus making it difficult for smaller businesses to survive in the market for long, which will reduce variety of brands for customers to choose from, which will worsen people's quality of life, due to being bored of using the same products for so long.