STUDENTS' CORNER - 142
We saw what the companies normally do when engaged in introducing a
new project. Now, we move on to the next
stage: growth stage.
In this stage, the company has managed to penetrate the market
recording the presence of its product. It must have impressed the market with
its quality of the product and its efforts are now focused on maintaining the
quality and trying to increase its market share.
Increasing market share itself is a challenging task; in fact, no
activity connected with business is an easy task. Before trying to increase the
market share, the primary consideration must be that the present market for the
product is rather stable, not having registered any decline for quite some
period. The product must have begun to enjoy confidence of its customers based
on, among other things, its quality that has set it apart from the rest of the
same kind of product from its competitors. Of course, the financial strength that can support the
efforts of the company towards increase in the market share. And almost an exact assessment of the
competitors in terms of their potential rivalry to be manifested in market must
guide the attempts of the company in taking efforts to augment market share.
There are some popular ways adopted by almost all the companies that
engage themselves in increasing the market share; they are product innovation,
strengthening customer relationship, exploiting customers’ ideas. It is also suggested as an initiative while
trying to increase the market share, to buy a competitor who has made his
footprint in the market.
One thing to remember: these are all theories though of course derived
and framed based on experience only; they are not verbal flourish in vacuum.
Every company has to find its own method to adopt. Imitation just blind one may
lead to failure and failure costs.
We will move on to the next stage in our next.