Owning Your Industry — How to take market share from your competitors

Published on
November 3, 2022
Peter Brocklebank
Managing Director, Partner
Subscribe to our
By subscribing you agree to with our Privacy Policy.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

In 2021’s first quarter, Samsung dominated the smartphone market at 22%, eclipsing Apple at 17%. The same goes for Colgate as it prevailed in the toothpaste market at 39.3% in their 2021 second-quarter report.

These brands have been a part of consumers’ daily lives as they become synonymous with smartphones and toothpaste. You think of making a call on your phone, a Samsung smartphone easily comes to mind. You think of cleaning your teeth, a tube of Colgate pops in your head without question.

Taking Market Shares from Competitors

Suffice to say that as of 2021, Samsung and Colgate have taken most of the market shares in their respective industries. Since they are large companies to begin with, they have the cost advantage of ​​operating on a greater, more efficient scale and increasing profitability.

This leads to a swelling of sales. What follows is a boost in brand reputation and loyalty which then amplifies their customer base as remaining consumers follow suit.

Samsung and Colgate’s market share increase leads to industry dominance. This positions them to enjoy greater bargaining power when negotiating with their respective suppliers and distribution channels.

The question that comes begging now is: how do they do it?

The scale-up specialists at BeingIconic have 4 ideas on how they made this happen.

1) They innovate big time

To build market-leading products, Samsung helps their internal innovators spread their wings by creating an ethos that bridges creativity and productivity.

In Samsung’s Creative Lab, employees’ progressive thinking is encouraged. They are given the tools, time, and support to think outside the box and nurture their own business ideas into becoming full-fledged businesses — even if their ideas do not align with Samsung’s existing areas of expertise.

In the end, they are able to build new products and services that Samsung develops further as a profitable stand-alone business.

Colgate, on the other hand, transformed its industry while greatly impacting both business, culture, and society by working with recycling associations to help further sustainability efforts.

Their commitment to purpose-driven innovations, forward-thinking corporate culture, and sustainability allowed them to create breakthrough recyclable, reusable, and compostable laminate tubes. They then shared this technology with other companies to boost sustainability on a large scale and inspired others to follow suit.

This dedication to “reimagining a healthier future for all people, their pets, and our planet” has allowed Colgate to lead innovation efforts while creating a positive impact on the environment and on the lives of their consumers worldwide.

2) They lower their prices and increase product quality

Samsung, no doubt, provides more affordable smartphones than Apple without compromising quality and features. Colgate has maintained its stance of providing high-quality personal care products that are affordable and accessible for everyone.

By maintaining relatively low prices than their competitors, Samsung and Apple are able to attract more customers, widen their customer base, and increase sales.

3) They strengthen their customer relationships

By committing themselves toward strengthening their customer relationships, Samsung and Colgate are able to protect their existing market and guarantee no losses — in terms of existing customer base and profits — despite steep competition.

Samsung goes beyond the “break, fix model” and focuses on building long-term, meaningful customer relationships that transcend the one-off service fixes.

A few ways they did this is by providing high-quality customer service through various channels, including its deployment of Samsung Care Tucks that service customers in New York City as well as door-to-door repair services to cater to lockdown restrictions in the Philippines.

Their focus on the end-to-end customer journey allows them to deliver amazing experiences that delight customers and make them Samsung fans for life.

Colgate did something similar by strengthening their relationships with dental and veterinary professionals. Doing so allowed them to consistently build credibility, increased support, and boost recommendations for their products, eventually driving product trials and long-term loyalty.

To build on their efforts, Colgate established global guidelines for professional sales, sampling, academic relations, obtaining dental seals of approval, dental convention attendance, and participation in Oral Health Month.

This move encouraged more usage and endorsements from Colgate among global oral care professionals.

4) They acquire competitors

Acquiring a competitor allowed Samsung and Colgate to gain access to new customer bases, reduce competition, and establish dominance over their industries.

For fifty years, Samsung grew primarily from the inside. However, in recent years, the company had several key acquisitions that strengthened and accelerated its expansion into other fields, including cloud computing and artificial intelligence.

Two of their biggest acquisitions, including audio, visual, and connectivity company Harman International Industries ($8 billion) and organic electronics company Novaled ($347 million), were done to meet the increasing demand for products and services related to the Internet of Things.

Acquiring these two companies alone allowed Samsung to make cars more automated and connected with technologies such as smart audio and connected and automotive technologies. This also sharply boosted the quality of Samsung TVs and other screens.

Colgate decided to break out of their own mould by making their first major acquisition since 1995. They have acquired premium European skincare brand Filorga ($1.7 billion) as well as Physicians Care Alliance and Elta MD Holdings (a combined $730 million).

Their concerted effort to expand their personal care business allowed them to branch out to skincare. This move allowed Colgate to diversify and tap into more premium markets, leading to higher profits compared to their other targeted, more affordable products.

No doubt that Samsung and Colgate have a lot to teach us, especially in dominating their respective industries and cementing their status as one of the few companies that have only grown despite challenges and changing tides.

They have done so through boosting innovation, providing competitive prices, strengthening customer relationships, and acquiring competitors. Their commitment to diversity, inclusiveness, accessibility, and social responsibility has paid off ten-fold and will only continue to grow in the coming years.

As a growth consultancy, we at BeingIconic have worked with numerous industry leaders in increasing their market shares, strengthening their value propositions, and boosting brand loyalty. Partner with us today if you want us to do the same for you.