Increasing market share is the goal of every business. It is not the final step for these organizations. Commercial enterprises expect that an increase in market share will lead to an increase in revenue.
a company that sells corned beef slowly starts to take customers from
one of its competitors, they expect that those customers will continue
buying corned beef at the same rate that they always did, so the
earnings of the other company will now fall in their coffers.
will only make the switch if they perceive that in some way, the newer
company has a better product than the one that they previously did
business with. If both are determined to be the same, there will be no
basis for preference and things will remain unchanged.
applies to both tangible products and people who are building their
personal brands. Suppose two actors are going up for the same job. The
one who consistently performs well every time they go to an audition
will slowly build preference for their brand.
arise, they will be cast in the roles that are available. They have
built awareness of themselves by making sure they turn up at every
audition possible. They did a good job and industry players started
preferring them over others. That preference led to an increase in the
number of jobs that they were able to get, that is, an increase in market share.
they were able to get more jobs, or their market share increased, they
were able to earn more money. In fact, as time goes by, if they continue
to perform well, they will be able to command a higher rate per job
than the average person. They have created preference and that has led
to increased profitability for them.
Let’s consider two companies,
they are real but I have adjusted the story a bit. Both of these
companies sell coconut milk but in the past, one of the brands was more popular because they had positioned their brand as the authority on what made food great.
newer brand took its time and made sure it appeared everywhere that its
competitor was. It also made sure its product was consistently of a
higher quality. As a result, people now prefer the newer brand of coconut milk and that company earns more revenue than its competitor.