Free Market Share Essay Sample

Market share is an extremely vital component for any company. It is the heart of the company that needs to beat continually. Market share analysis helps managers to make decisions that will ensure the success of the business. When managers use the market share in their decisions, there is much accuracy in their forecasts than when using other factors. Many scholars have stated that market share of the business is the key element in a business success.
Market share is considered as the company’s strength compared to the companies operating in similar industry. This project will help Under Armour Company to know its market share. This will help the management in making amicable decisions on how to serve their consumers. The company will compare itself with its rivals. The company will know the trends of its market share whether there is an upward or downward progress.

Market share can be defined as the total sales of a given service or product controlled by a given company in a given region. Market share is vital to the companies because it shows the competitive strength of a business in a given sector. Market share helps companies to determine whether they are progressing or not. Market share helps companies in the same sector to measure whether they are doing better than the previous years or not.
Companies do use different methods to increase their market share. They can increase their advertising and product promotion campaigns (Marston, 2011). Companies can lower the price of their products making them affordable compared to those of competitors. Companies can look for better methods of distributing their products (Kawasaki, 2008). Quality improvement of a product may increase its market share.
When consumers have loyalty in a certain brand they will go to encourage, their friends and family members to buy the same brand (Lillie, 1998). Unilever Company needs to ensure they have satisfied their consumer needs. Scholars state that the relationship factors between the seller and the consumer would determine the market share. They suggested that there is a need to have an intimate relationship between buyers and sellers of given products (Newlean, 2009). The good rapport between the purchaser and the distributor has to be encouraged; this is because consumers are the most convincing agents to potential consumers. If there happen to have a strong and friendly relationship, the companies will save a large amount since they do not need to use much money on product promotion.
Increase in the market share is vital to the business because it shows whether the sales forecast is to be achieved by growing with the market or by acquiring the market share of competitors. However, an increase in the market share is not necessarily the best remedy the company should always try to achieve (Miniter, 2002). This is because an improvement in the market share may be because of huge investment in terms of equipment, product promotion or increase in the work force. If the increased market share has many expenses, then its better if the company has a small market share that it can comfortably satisfy without incurring many expenses.
Increased market share is hazardous for companies that deal with the manufacture of fungible dangerous goods. The use of market share as the parameter for measuring the performance of the business is that it is fewer dependants on state of the economy or any other macro environmental variables.
Under Armour Inc commands a sizeable market share in sports attires and accessories. The company has a market share in various countries in the world. Several factors determine the market share of a given company. These factors are unit sales, user base, market definition, scope of denominator, period length and product definition. For the company to increase its market share it can sell more to the current clients, it can establish new channels, increasing customer base to incorporate similar persons who were not customers before.
The company may use its expertise base to create new quality products. The most rapid avenue to command large market share is to search for new markets (Simon, 2006). There are high risks to be encountered in this strategy. The company needs to plan well before moving to new markets. It has to have well designed goals and set targets at every step it undertakes. Failure of the company to evaluate its progress may lead to spending money on unsuccessful expansion.
Choosing the right channel for the company to sell its product needs careful consideration. The decision to use a given channel will depend on the product the business sells. Company may decide to use direct to her customers whereby no third party. This looks beneficial since the company is   not obliged to pay the commissions to third parties. The problem with this channel is that it discourages the third parties who buy from the company as they view the company as the competitor (Carroll, 2011). The company may adopt to use wholesalers and distributors. This helps company to utilize the business base of the distributors (Shaffer, 2011). The company may use online and e-commerce, as this helps the company to improve its market share since it conquers geographical barriers.
In areas where the company wants to expand their market, size in risky areas that would otherwise prove difficult, it would be better for the company to appoint an agent. Market share may be computed in different ways. One can calculate using the units of products sold or by use of the value of items sold. These two methods usually provide different answers. This is because different companies value their products differently. When a market share is growing that, is a positive, and when the market share is falling that is the negative. Companies should consider having a positive trend. A big fall in the market share may depict future collapse of the company.
                                                           Research Problem
Many companies including Under Armor Inc are unable to satisfy their consumer needs. This is because these companies are unaware of their market share in the sectors they serve. This leads to competitors taking advantages of the situation. It leads to loss of revenue and lose of brand loyalty. Consumers complaints results in poor relationship and tinted public image of the company.
Objective of the Research
The main objectives of carrying out this research are to:
i. To determine whether market share affects the profit of the company.
ii. To determine the relationship between price and the market share of the company.
iii. To determine the relationship between the quality of company’s product and its market share.

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Significance of the Research
The main goal of undertaking this research is to ensure Under Armor Inc has a clear knowledge of its market share. This will be vital in making decisions that will ensure they remain at the top or acquire new market size. The consumers are to be well served once the company knows its market size as it will ensure steady and right quantity supply to the market.

                                  Proposed Research Schedule and Action Plan

Research Hypothesis

H1: brand loyalty positively affects the market share of the company.
H2.Quality of the product positively affects the market share of the company
H3. Number of the competitors positively affects the market share the company
H4. Price of the commodity the company sells positively affects its market share
Research Methodology
Population and Sample Size
A population of this study is 4 million people who are the target customer of Under Armour, Inc. The sample size of 1200 persons, who comprise the old, and young, female and male get selected at random. People with different life style, social status and different financial status got selected as the sample.
Data Collection Method
The researcher to analyze the factors affecting market share of different companies uses both primary and secondary data. Primary data was acquired through issuing of the questionnaires which respondents were requested to fill after being briefed on the aim of the study. Questionnaires were clear, brief, easy to understand and straightforward thus easy to be understood by every respondent. Secondary information was found from past studies on the topic as well as books.
Questionnaire Design
Each questionnaire contained 25 clear and easy to understand questions, which helped in understanding of the factors influencing companies market share. In addition, pilot Test was carried out among 20 customers, and this ensured that questions were well understood the way the researcher designed.
Data Analysis
The Interviewer Quality Control Scheme will be adhered to make sure that different validation and administrative procedures are in agreement with global standards and to maintain the efficiency of the data collected (Leedy, 2009). Missing data will be considered untrue and will not be used in the analysis. ANOVA, Chi-square, as well as the Contingency Tables, were to be used. After which Cluster Analysis was then employed to highlight the various segments of the chosen variables (Kovalainen, 2008). Euclidean distance was applied, and employed to evaluate the distance (Neuman, 2009). Non –hierarchical method were also used since it was convenient in adjusting while dealing with a large sample. The outcome of these was to identify the factors affecting market share of Unilever Company.
Reliability
Quantitative research has numerous advantages as follows; it takes a short time to collect data, and it is relatively cheaper due to the short time taken in collecting data. The quantitative research is also objective i.e. it has objectives and the data found test hypotheses. Quantitative improves the reliability though it has several setbacks one being its ineffective in terms of validity.
Limitations
For this research to be successful, it requires an enormous amount of money, which is not available. The respondents may give false information, which may lead to inaccurate analysis, and conclusion. Since, Under Armor, Inc carry out its operation in different states with different cultural, economic and social dimensions a study carried out in one given area may not be fully representative. People being dynamic and not static the data collected today together with its conclusions may not hold water in the future. This research requires adequate time in order for it to be more representative, which is not, available for now thus further studies need to be carried out to ensure true findings and conclusions are made.
Resource Implication
The research will cost about $1150. The amount will be used in printing the questionnaires, travelling to meet the respondents and surfing charges to get secondary information. The amount includes wages needed for hiring of distributors of the questionnaires due to time constraint.

 

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