Market leadership occurs when a firm holds the number one or the number two position in an industry or niche market in terms of sales volume. Many firms work hard to achieve market leadership, to realize economies of scale and economies of scope, and to be recognized as the brand leader. Being the market leader also permits a firm to use slogans such as “Number 1 Electronic Games Producer in America” in its promotions, helping it win customers and attract talented employees as well as business partners.
Definition