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What is a market leader?

Market leader

When a company, brand, product or service has the largest market share or sells more of a particular product or service than its rivals, it’s classed as a market leader. Its position of dominance can help it sustain future revenue and shape the competitive landscape.

Where have you heard about market leaders?

Market leader is a phrase you'll often see in the press when big companies are being talked about. Coca-Cola is a market leader in the global carbonated soft drinks market, while Tesco is a market leader in the UK grocery sector.

What you need to know about market leaders.

Market leaders have a strong brand loyalty and customer following, and tend to trendsetters in adopting new business practices and technologies that give them a competitive edge. To maintain a dominant market share they need to attract new customers as well as retain existing ones. This could be done, for example, by lowering prices in a bid to price smaller competitors out of the market.

Market leaders do, however, have to be careful not to become too powerful. In the UK, the Competition Act is designed to stop companies abusing their position of dominance.

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