SWOT Analysis

Strengths. Weaknesses. Opportunities. Threats. Sounds like any playbook for a sports team, a corporation, or, well...maybe a marriage? Ah, the romance.

But companies live and die by this type of structured analysis. There are fair questions to ask, and they help frame what you're up against in the David/Goliath fights that seem to exist...always.

Endless books written on the topic as well. Our fave: The Goal.

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Finance: What does it mean to be a marke...1 Views

00:00

And finance Allah Shmoop What does it mean to be

00:04

a market leader Well it's way better than Vienna market

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Half gallon Oh wait Yeah different leader A market leader

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is like this guy the Alfa dog the man or

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the womb There the price center not the price taker

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there The one who sets the standard in that industry

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Okay think Disney Land They're the unquestioned unrivaled market leader

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in theme parks They set prices meaning that they simply

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figure out what price optimizes whatever Disney wants to optimize

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like profits or throughput or revenues And it says Hey

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Walt it's one hundred fifty bucks a day each to

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come here with your whining kid cranky grandma and angry

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Nanny don't like it Well then don't come We have

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a million others all waiting for the privilege So Disney

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sets the prices market leader and a visit to every

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other theme park has to cost less than it does

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to attend Disneyland or Disney World or Disney Town or

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Disney Escape Room Or you know whatever in the land

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of soda and soft drinks while Coke is the leader

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with Pepsi just a skosh behind the two of them

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comprised eight duopoly I eat a monopoly comprised of two

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sellers who together completely dominate the industry They set price

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in terms and distributing their wares to grocery stores and

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restaurants and ballparks And you know desert vending machine thing

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is everywhere We'll market leaders don't have to be huge

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behemoth things either However Ferrari is the market leader in

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mid life crisis cars For men they're the best The

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gotta have the best distanced Yeah and they set prices

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for their cars and more or less wherever they want

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within a range and buyers pay up Very few if

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any Ferraris ever go unsold Ferrari is the market leader

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the brand leader the pack leader while other things come

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to you as market leader like while the best employees

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right the best at rule following grinded out corporate America

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are new lamented MBA is from Harvard Business School They

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run forward with blinders and enormous horsepower and when you're

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the market leader they all want to fall in line

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working for you Market leaders also get first dibs on

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things like acquisitions like your Anheuser Busch the market leader

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biggest producer of beer in the world Along comes a

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whippersnapper upstart local chain of microbreweries whose customers just love

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their cantaloupe line flavored drink beer Well the founders are

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really ready to start enjoying life instead of smelling molding

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yeast all day Who's there first phone call Gonna be

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Yeah to you but no but wiser Why then while

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Anheuser Busch gets first look at all the hot acquisitions

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Because well they're the market leader and pretty much everyone

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heart's being associated with the market leader The winner the

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Alfa the Tiger the Michael The downside of being a

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market leader Well there's room to fail and fall The

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ladder gets slippery up there Coca Cola didn't always used

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to be the bomb R the Mentos in the Coke

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bottle in the early nineteen seventies Some genius exactly Coke

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recognized that they bought a lot of TV ads so

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that exact got Coke toe by a movie studio Columbia

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Studios Yes they actually thought that buying a lot of

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TV ads qualified them Tio you know tell stories of

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love drama and pathos and put butts in seats in

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theaters So Coke bought Colombia in the string of total

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flops almost bankrupted the company Finally they sold it and

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got back to repurpose ing sugar and fizzy water and

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well they're really good at that Really really good Market

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leaders also risk missing a big cycle especially in the

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hard fought landscape of tech companies You know technology land

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well in two thousand eh Well was the largest market

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cap company in the world along with Yahoo and a

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few other noteworthy Sze all of whom ended up being

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sold for a tiny scrap fraction like just a few

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percent of what they were worth That their peaks Companies

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get protective they get conservative they get bureaucratic and slow

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moving Sometimes live hungry entrepreneurs a lot of them from

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Silicon Valley these days have all kinds of weaponry Teo

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you know go whale hunting against market leaders so you 00:04:05.545 --> [endTime] know beware if you're one of them No

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