What is a Market-Dominating Position and Why Your Company Needs One?
You may have heard the term “market-dominating position,” but what does it mean? And why is it so crucial for your home service business?
A market-dominating position is when your company is the clear leader in your industry and market. Consumers perceive your company as the best option, and you have a majority market share.
There are many benefits to having a market-dominating position, including increased profits, higher customer loyalty, and more substantial brand recognition. To achieve this level of success, you need to focus on providing an outstanding product or service and ensuring that your marketing efforts are top-notch.
If you’re ready to take your home service business to the next level, read on to learn more about creating a market domination strategy.
The definition of a market-dominating position or unique selling position.
Your market-dominating position is a marketing strategy based on what will make your company unique and what your company does better than any other company.
The strategy should focus on your target market and its hot buttons. The marketing strategy should also be based on analyzing the competition and what they are doing.
A market-dominating position is not a slogan or catchphrase that any company can spout about in hopes of attracting a customer.
Based on this information, you can create a plan to make your company stand out in the marketplace. By establishing a solid market-dominating position, you can ensure that your company is successful.
How to identify if you have a market-dominating position.
Markets are constantly shifting, and what might have been a market-dominating position yesterday might not be today. So how can you tell if your company has an actual market-dominating position?
First, ask yourself if your statement can be easily challenged or debated. If you can say, “well, I hope so,” after your message, it’s likely not a market-dominating position.
Second, ask yourself if your statement is specific and measurable. A vague statement like “we’re the best” will not cut it. Instead, you need to be able to back up your claim with evidence.
Finally, ask yourself if your statement is unique. If your competitors could easily make the same claim, it’s not a market-dominating position. By meeting all three criteria, you can be confident that you have a proper market-dominating position.
A market-dominating position is a powerful tool to implement in your business. It will help your company obtain a significant market share and wield incredible power.
The benefits of having a dominant market position.
There are many benefits to having a market-dominating position. For one, it allows you to set the price of your product or service rather than being at the mercy of competitors. It also gives you greater control over distribution channels and allows you to expand into new markets more easily.
Moreover, a dominant market position provides economies of scale, which can lead to lower production costs and higher profits. Higher profit margins can lead to cost advantages over rivals and allow your company to invest in other areas to maintain its dominance.
Consider Amazon and how it revolutionized the online shopping experience with Prime’s two-day shipping. Amazon’s earlier market-dominating positions related to selling hard-to-find books provided the funds to grow into the dominating brand it is today.
Finally, it also confers a certain degree of prestige and status, which can help to attract new customers and partners. Think Apple in this case. There is nothing special about the hardware within the latest iPhone or MacBook.
There are plenty of devices that meet or even exceed the capability of an iPhone. Still, the initial purchase is about how the product makes you feel. The convenience of the ecosystem keeps people coming back when the latest version is released.
In short, a market-dominating position confers many advantages, making it an important goal for any business.
How to maintain your market position.
As the market leader, it is vital to maintain your dominant position. Maintaining your top position requires a deep understanding of your customers and what they want or need. It is also essential to constantly innovate and offer new and improved products or services.
Additionally, you must effectively communicate your advantages over the competition. This involves understanding what they offer and articulating why your service is better than theirs. And suppose the competition’s service is better than yours. In that case, there is no shame in humbling yourself and referring your client to the competition to ensure they are taken care of.
I know this sounds counterintuitive, but your clients will thank you in the long run, and you may still benefit from a referral fee from the competition.
Finally, monitoring the market and your competition is essential to adjust your strategy as needed quickly. By following these steps, you can ensure that you maintain your market-dominating position for years to come.
Examples of companies with a strong market-dominating position.
At one point in time, pizza was a strictly sit-down affair. You would go to a local pizzeria, order a pie, and enjoy it with friends or family. However, as lifestyles became more hectic than the previous generation, the demand for convenience grew. And that’s where Domino’s came in.
By delivering hot, fresh pizza right to your door, they quickly rose to dominance in the college market. They became so popular that their market share reached an astounding 70%.
But how did they achieve such success?
It all comes down to their business model. Instead of investing in sit-down brick-and-mortar locations, they focused on building a strong delivery infrastructure. Their proximity to campuses allowed them to reach students who were otherwise unable or unwilling to leave their dorms. And with countless late-night study sessions and parties to cater to, Domino’s had no shortage of customers. Thanks to their innovative thinking, Domino’s took over the college pizza market and has remained at the top ever since.
The crazy thing is. Domino’s Pizza isn’t even that great!
In the early 1980s, Domino’s Pizza was a struggling company with just a handful of stores. However, they made a significant change that would help them take over the college pizza market.
They began offering delivery within 30 minutes or less, or it was free, an appealing proposition for busy and broke college students.
They also offered discounts and promotions specifically for students. As a result of these changes, Domino’s quickly gained market share. They became the dominant player in the college pizza market. Today, Domino’s is the largest pizza chain in the United States, thanks in part to their success in targeting college students and having a unique selling position of hot fresh pizza delivered in 30 min or less.
So, what is a market-dominating position and why do you need one? A market-dominating position means that your company has the largest share of the market in terms of revenue or units sold.
This is important because it gives you a significant advantage over competitors. Customers looking for a service you provide are likelier to choose yours if you can convey that you can solve their problem and provide the most value.
And having a dominant market share doesn’t mean resting on your laurels – it means continuing to innovate and offer products and services that appeal to consumers. If you’re unsure whether your business has achieved or can achieve this coveted spot, don’t worry – we can help. Contact us today for a no-cost analysis of your business and recommendations on maintaining (or even improving) your current market-dominating position.