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The Advantages of Market Leader

Updated February 21, 2017

When you are a market leader, there is constant pressure to maintain a high standard and continue to repeat your success. Being the market leader has many advantages that the more powerful companies use to stay on top. When you set out to be a market leader, you will find that becoming number one offers many different advantages.

Financing

As a market leader, you develop a reputation for being the preferred brand of the entire marketplace. This not only impresses clients and frustrates the competition, but it also opens the eyes of potential lenders and investors. When you become identified as the top brand in your industry, lenders assume you are generating significant revenue. Your reputation can do as much for securing the financing that you need as your actual sales performance can.

Advertising

A market leader is identified by the consumers in a particular marketplace as having the best products. So long as your company continues to generate quality products, you are able to leverage your reputation in your advertising campaigns. You will start to see sales increase based on word-of-mouth advertising generated by your company's market leader status. This does not necessarily mean you can invest less in your advertising and marketing campaigns. But it does help you get a higher return on your advertising investment.

Distribution

Retailers and distributors prefer to deal with market leaders. When you establish yourself as having the top-selling products in the marketplace, you will find it easier to establish relationships with distribution outlets. This will increase your revenue and make it easier for you to open up sales outlets in new markets as well. You can also negotiate more favourable sales terms with your distribution outlets, such as better shelf placement for your products in retail stores and preferred placement in catalogues and sales circulars.

Personnel

Qualified employment candidates see a market leader as offering job security. When your company is identified as one of those market leaders, you will have the top talent in your industry asking to work for you. This constant influx of the best employment candidates in your marketplace will help you to keep your market leader status.

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About the Author

George N. Root III began writing professionally in 1985. His publishing credits include a weekly column in the "Lockport Union Sun and Journal" along with the "Spectrum," the "Niagara Falls Gazette," "Tonawanda News," "Watertown Daily News" and the "Buffalo News." Root has a Bachelor of Arts in English from the State University of New York, Buffalo.