A Large Market Share

The impacts this will cause on businesses and competitors will lead to both factions having an increase in turnover, profit and power. The market leader will have to some degree power of control over prices and marketing strategies, which competitors may have to follow if the market leader has put prices of products at a low amount. It will allow businesses and their competitors to use economies of scale, which is a reduction in the average costs of production due to the increase in size and scale of output which is bought by a large market share of a sector. This will give businesses the chance to reduce prices and maintain profitability or maintain price and increase profits. Competition will be less fierce in a large market as  there is more money to be made, there is less chance of failure, a high demand for products and there is a higher chance of success.