Market share growth

Definition

Market share growth refers to the increase in a company's portion of sales within a specific market over a given period. This growth can signify a company’s competitive strength and success in attracting customers, often resulting from strategic initiatives, innovations, or effective marketing. Companies aim for market share growth to enhance their presence, increase profitability, and secure long-term viability in an ever-changing economic landscape.

5 Must Know Facts For Your Next Test

1. Companies often use university-industry partnerships to develop innovative products or services, leading to increased market share through unique offerings.
2. Spin-offs can create new companies that focus on specific market segments, thereby allowing for targeted growth in those areas and boosting overall market share.
3. Collaborations with universities can lead to access to cutting-edge research and technology, enhancing a company's ability to grow its market share.
4. Market share growth is often measured against competitors in the same industry, making it crucial for companies to analyze the competitive landscape regularly.
5. Successful marketing strategies that resonate with consumers can significantly impact market share growth, especially when tied to product innovation derived from academic research.

Review Questions

• How do university-industry partnerships contribute to market share growth?
  • University-industry partnerships enhance market share growth by enabling companies to tap into academic research and innovation. These collaborations often lead to the development of new technologies or products that can give companies a competitive edge. By leveraging unique insights and cutting-edge knowledge from universities, companies can differentiate themselves in the market, attract more customers, and ultimately increase their sales volume.
• In what ways do spin-offs impact a company's market share growth strategy?
  • Spin-offs allow companies to create independent entities that focus on specific niches or innovative products, which can lead to significant market share growth. By concentrating resources and expertise on particular segments, spin-offs can develop specialized offerings that may attract customers away from competitors. Additionally, these independent ventures can experiment with new business models and strategies, further contributing to overall market share enhancement for the parent company.
• Evaluate the role of innovative marketing strategies derived from university research in driving market share growth.
  • Innovative marketing strategies stemming from university research play a critical role in driving market share growth by providing companies with unique insights into consumer behavior and trends. Such strategies can lead to more effective targeting and positioning of products, as well as the creation of compelling value propositions that resonate with potential customers. When companies successfully implement these advanced marketing techniques based on solid research foundations, they can significantly improve customer engagement and loyalty, leading to sustained increases in their market share.

Related terms

Competitive Advantage:

The attributes that allow an organization to outperform its competitors, such as superior product features or customer service.

Market Penetration:

A strategy focused on selling existing products to an existing market to increase market share.

Value Proposition:

The promise of value to be delivered to customers, highlighting the benefits that make a product or service appealing.