I recently posted on the Capitalism Lab forum asking if there was a way to dominate the market share with my products. I decided to put my assumptions to the test and make a tutorial episode on How to Dominate Market Share.
I remember in my previous scenario series of Real Estate one of my competitors had so many stores and was dominating the market. It made me assume, my problem is that my products don’t have enough demand because nobody was selling them. If the competitor has their own supply chain from the farm/mine to the store, then I had to do the same because nobody would sell my products if someone else already is offering a good quality product with high brand ratings.
In this tutorial, I decided to begin with the Gold and Silver industry to dominate the market share of Gold Rings and Silver Necklaces using Jewelry Stores. The idea was to mine, manufacture and sell while capturing the entire market share.
My assumptions proved to be correct, by building more Jewelry Stores, I was able to capture the market share further. Obviously, in this scenario, I did not really care about profit or anything other than market share. You need to be careful before building this many stores.
Not all of your stores will make a profit, so you want to be able to balance out market share and profit. Ideally when you have more than 1 product that you can sell, your chances of making a profit increase as you will then be able to sell all of the products in each store.
In any case, that might be another day’s tutorial. For now, I hope this tutorial helped.
Lessons learned from How to Dominate Market Share
1. More Stores More Sales More Market Share
Keep on building more shops around the city to capture the market.
2. Becareful about profits
Having the entire marker share means nothing when you don’t make a profit. Keep an eye out on your stores to ensure that you are not sacrificing your profit over dominating the market.
3. Don’t begin by dominating the market
It is always better to grow slowly before you eat up the market. Grow your product, improve the quality and the brand, try to have 1 store that begins to give you money. Let the competitors sell your products as well so you don’t have to do everything yourself. When the time comes, start adding stores and get rid of your competitors by either decreasing the selling price to cost until they leave (assuming you dominate the manufacturing side) or increasing your factory prices to the selling price so your competitors make no profit and you eat it all in the factory side.
Let me know what you think below 🙂