Respond to two or more of your colleagues’ posts in one or more of the following ways: (100 words or more each colleague).
• Ask a question about why the company your colleague selected could benefit from increasing its market share.
• Provide an example of another company that implemented (or failed to implement) a recommendation that your colleague provided.
• Offer an additional recommendation for how the company your colleague described could increase its market share, including a rationale for your recommendation.
Return to this Discussion in a few days to read the responses to your initial posting. Note what you have learned or any insights you have gained as a result of the comments your colleagues made.
1st Colleague to respond to:
The company that comes to mind is a previous employer in the Long Term Acute Care setting (LTAC). This company was located in the northern part of the United States with two competitors in the entire state; one to the north and the other to the far west. Essentially this small, for profit hospital, could acquire at least one third of the business with a border to a state close by adding in additional patients. Their specialty was niche and they were extremely successful with the patient outcomes. Unfortunately, the brand wasn’t there and the majority of the community didn’t know of the LTAC let alone what was done there; if the local community is unaware it is safe to assume even less outside of the community knew much.
Having potentially one third of the state’s region, being located within 45 minutes of major hospitals including many of the country’s best, and being well-known would have benefited the hospital tremendously. Minimal funds were provided to the marketing team leaving one grainy commercial and one billboard ever in my 7 years with the company; in fact, the billboard was in the opposite direction of the facility, facing the beginning stretch of a major highway limiting exposure.
The company had an extensive understanding of their market, between the niche they were successful with, the known competitors, and continuous improvements for customer satisfaction. The major actions missing for increasing market share were innovation as society does (Carmichael, 2020). Staffing was a major problem as turnaround was high. Dated technology and unimproved processes led to frustration and poor perception of the facility by patients and families. As an LTAC facility funding was limited, and the company was a for-profit facility increasing the challenges. The second benefit could have been through engagement with customers. Outside of the hospital walls, and beyond the one commercial and one billboard, there was close to no potential customer engagement (Carmichael, 2020).
Three recommendations include acquiring companies, improved price points, and customer focused improvements (Kramer,2022). Acquiring companies can be from a variety of focus points. Buying companies in the business’ supply chain to help ensure supplies or streamline their process to help reduce cost while providing supplies to other companies and increase profits; another is to buy better processes where it is more cost effective to purchase a well running machine versus starting your own. Improving price points through process improvements, incorporating new vendors, or buying vendors and absorbing costs could prove beneficial. Lastly, the customer service or experience could help improve market share. Customers, especially those coming for larger, less frequent purchases, are looking for an experience to match the price point or just to include in their social media. A happy customer is a repeat customer.
Kramer, L (2022). What strategies do companies employ to increase market share? Investopia https://www.investopia.com/ask/answers/031815/what-strategies-do-companies-employ-increase-market-share.asp
Carmichael, K. (2020) 5 ways to increase your market share. Hubspot.https://blog.ubspot.com/marketing/how-to-increase-market-share
2nd Person to Respond to:
Market share is the percentage of a market’s sales earned by one company over a specific period. As a measure of a company’s competitiveness, analysts and investors closely monitor its market share. Kroger Co. is one of the largest retailers in the United States based on annual sales. With nearly 2,800 stores operating in 35 states under 28 different brands, they are the nation’s largest grocer. In the 1980s, our supermarkets evolved into combination stores, adding pharmacy, beauty, and health care to a growing store selection. Kroger stores offer everything from basic grocery staples to organic vegetables, natural foods, and hot meals ready to eat. They operate more than 2,255 in-store pharmacies that fill 238 million prescriptions annually. And fuel centers in more than 1,545 locations let our customers gas up and save where they shop (Kroger, 2021).
Despite a slight decline in its share, Kroger Co. remains one of the largest grocery retailers. It is possible that market share can affect operations, pricing of products and services, and, potentially, the performance of stocks. As market share grows, revenue grows as well. As a result, a business can expand its operations and increase profits. Those with a larger market share can bulk order products and supplies at a discounted price. As a result, even if a business has the same price as its rivals, a larger business with a larger market share will still have a higher profit, making it a healthier company (Avada, 2022). The company can also offer more discounts or promotions with bulk ordering; Thus, its rival’s customers will be more likely to switch brands, increasing its market share.
Without a thorough understanding of your market, specifically your competitors and how you compare, it’s challenging to increase your market share. Among Kroger’s competitors are Target, Amazon, Walmart, etc. They are all in a race for shoppers’ loyalty. Building and strengthening relationships with existing customers is a smart strategy for gaining market share. A company can also expand its customer base through word-of-mouth marketing, often provided by satisfied customers. Increasing market share can also be achieved by innovating. You can also innovate your product, improve your production method, and improve your marketing strategies to gain market share (Kramer, 2022). A company’s entire organization has the potential to innovate at a high level.
