The industry leaders are losing share

Symptom: Several of the industry's top competitors are losing share to smaller competitors.

Implications for the market:

  • In the average hostile market, competitor failure is responsible for the great majority of all share moves. Superior product or service benefits are responsible for only minor share shifts.

  • When the largest companies in any market fail their customers, large amounts of share are available to other competitors, since these large companies are usually the primary suppliers to the highest volume customers.

  • The failure of large companies gives new, smaller companies an opportunity to emerge as leaders. Smaller competitors who are performing to market expectations and who are well positioned in relationships with customers being failed by their primary suppliers are likely to gain share rapidly–more rapidly than if they were in a stable customer relationship. The relative strength of competitors in the market then shifts.

Recommended Reading
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Analyses:

Perspectives: Conclusions we have reached as a result of our long-term study and observations.