16.1k views
3 votes
Impact of having a large market share

1 Answer

4 votes

Final answer:

Having a large market share can lead to increased brand recognition, customer loyalty, and lower production costs.

Step-by-step explanation:

A large market share can have a significant impact on a business. It can lead to increased brand recognition and customer loyalty, which can result in higher sales and profits. Having a large market share can also provide economies of scale, allowing the business to lower production costs and offer competitive prices.

For example, a company like Apple has a large market share in the smartphone industry. This allows them to invest heavily in research and development, marketing, and distribution, giving them a competitive advantage over smaller competitors.

However, there can be drawbacks to having a large market share. It can attract regulatory scrutiny and antitrust concerns, as well as increased competition from rival firms who are looking to gain market share.

User James Harzs
by
8.5k points