Adam Barone stated that a marketing strategy refers to a business's overall game plan for reaching prospective consumers and turning them into customers of their products or services. A marketing strategy contains the company's value proposition, key brand messaging, data on target customer demographics, and other high-level elements (2023).

The organization that I chose to focus on is American Airlines. American Airlines should definitely increase their market shares, especially post pandemic (or should I say now that we have learned to live with COVID). Furthermore, with increased competition in the market, increased market shares can help them to remain competitive in the market.

American Airlines can benefit from increased market shares as ahigher market share places companies at a competitive advantage:

1. Companies with high market share often receive better prices from suppliers, as their larger order volumes increase their buying power.
2. Increased market share and greater production go hand-in-hand, with the latter providing a company with the opportunity to decrease the cost to produce an individual unit due to economies of scale.
3. Higher market share can help improve sales when existing, brand-loyal customers buy more of a company's products.
4. Market share may also widen a company's overall customer base as potential new customers follow the lead of existing ones.
5. Gaining market share can strengthen and spotlight a company's reputation. In addition to boosting sales and increasing bargaining power, that can attract new, more talented employees.

To increase market shares, American Airlines can focus on the following areas:

1. Innovation - Innovation that attracts customers can come in different forms. One is useful, new technology that a company develops, introduces, and continues to improve before competitors gain a foothold. Consumers excited about the technology buy it, use it, and can become repeat customers.
2. Customer Loyalty - Building and reinforcing relationships with existing customers by cultivating their loyalty is a smart strategy to gain market share.
3. Advertising - Effective, frequent advertising offers a good opportunity to gain market share. Innovative branding and marketing through advertising can garner the attention of consumers, build connections with existing customers, and spur widespread desire for the products and services a company offers.
4. Price Reductions - Lowering prices is a solid strategy to help a company win market share. Lower, more attractive prices can attract consumer attention and loyalty. That can increase the all-important sales that drive market share higher (Kramer, 2023).

QUESTION:

• Ask a question about why the company your colleague selected could benefit from increasing its market share.
• Provide an example of another company that implemented (or failed to implement) a recommendation that your colleague provided.
• Offer an additional recommendation for how the company your colleague described could increase its market share, including a rationale for your recommendation.

Answer rating: 100% (QA)

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