Market vs. Industry Leader
Market Leader and Industry Leader are terms that are often used interchangeably, but it can be argued there is a nuanced distinction between them.
If you'll indulge me, please allow me to explain: "Market leader" focuses solely on market share, while "industry leader" includes other aspects or qualities of an organization, such as level of quality (product or service), technological advancement, customer service and more.
So, the question I have for you is: Which is better, a market leader or an industry leader?
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If you are a customer or end user, would you rather buy the market leader (the brand that has the most sales), or the brand that, despite being smaller, may have better technology, quality and service (industry leader)?
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If you are a contractor or service provider, would you rather install and service the market leader or industry leader's equipment that your clients purchase?
- Finally, if you are a vendor or manufacturer, would you rather be the market leader, having higher sales than the competition, or would you instead focus on technology, quality and customer service?
To be fair, in a free market, one would expect the "industry leader" to eventually become the market leader. The thinking behind that would be if you produce the best products and have the best customer service, your sales should eventually eclipse your competitors' and you will own the largest market share.
In theory, that sounds great, and a business or economics 101 textbook would agree. But, in reality, we all know the market isn't perfect, and there are countless variables that come into play. There is often a grey area between market leaders and industry leaders.
Maybe that new company with better technology hasn't had a chance to grow yet. Perhaps the entrenched market leader adds barriers to entry for other contendors. Or one of a million things that happen in the business world. So for sake of argument, let's assume that we live in an imperfect world, where sometimes, the best companies aren't the biggest.
