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Ex. 3, p. 80 (а, b, c), Translation practice, p. 84

1. The document discusses market leadership dynamics and strategies used by market leaders, challengers, and followers. It describes how market leaders are often the first companies in a market and can influence competitors through new product introductions and pricing changes. 2. Market leaders seek to expand their market share further or maintain their current share. They may try to grow the overall market size by finding new uses for products. Distinct market challengers often aim to increase their share by competing with either the leader or other followers. 3. Most companies are market followers that do not threaten the leader. Followers often establish profitable niches not addressed by other products to gain an advantage. Small followers without niches are vulnerable, as

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20 views3 pages

Ex. 3, p. 80 (а, b, c), Translation practice, p. 84

1. The document discusses market leadership dynamics and strategies used by market leaders, challengers, and followers. It describes how market leaders are often the first companies in a market and can influence competitors through new product introductions and pricing changes. 2. Market leaders seek to expand their market share further or maintain their current share. They may try to grow the overall market size by finding new uses for products. Distinct market challengers often aim to increase their share by competing with either the leader or other followers. 3. Most companies are market followers that do not threaten the leader. Followers often establish profitable niches not addressed by other products to gain an advantage. Small followers without niches are vulnerable, as

Uploaded by

sashadiukin
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© © All Rights Reserved
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Дюкін Олександр, ФК-203

Ex. 3, p. 80 (a)

Read the following text and write short headings for each paragraph.

1. Market Leadership Dynamics


In most markets there is a definite market leader: the firm with the largest market share. This is often
the first company to have entered the field, or at least the first to have succeeded in it. The market
leader is frequently able to lead other firms in the introduction of new products, in price changes, in the
level or intensity of promotions, and so on.

2. Strategies for Market Expansion

Market leaders usually want to increase their market share even further, or at least to protect their
current market share. One way to do this is to find ways to increase the size of the entire market.
Contrary to a common belief, wholly dominating a market, or having a monopoly, is seldom an
advantage: competitors expand markets and find new uses and users for products, which enriches
everyone in the field, but the market leader more than its competitors. A market can also be expanded
by stimulating more usage: for example, many households no longer have only one radio or DVD player,
but perhaps one in each room, one in the car, plus a minidisk or a Walkman or two.

3. The Role of Market Challengers

In many markets, there is often a distinct market challenger, with the second-largest market share. In
the car hire business, the challenger actually advertises this fact: for many years Avis used the slogan
“We’re number two. We try harder”. Market challengers can either attempt to attack the leader, or to
increase their market share by attacking various market followers.

4. Market Followers and Market Segmentation

The majority of companies in any industry are merely market followers which present no threat to the
leader. Many market followers concentrate on market segmentation: finding a profitable niche in the
market that is not satisfied by other goods or services, and that offers growth potential or gives the
company a differential advantage because of its specific competencies.

5. Challenges Faced by Market Followers without a Niche

A market follower which does not establish its own niche is in a vulnerable position: if its product does
not have a “unique selling position” there is no reason for anyone to buy it. In fact, in most established
industries, there is only room for two or three major companies: think of soft drinks, soap and washing
powders, jeans, sports shoes, and so on. Although small companies are generally flexible, and can
quickly respond to market conditions, their narrow range of customers causes problematic fluctuations
in turnover and profit. Furthermore, they are vulnerable in a recession when, largely for psychological
reasons, distributors, retailers and customers all prefer to buy from big, well-known suppliers.
Ex. 3, p. 80 (b)

Which of the following three paragraphs most accurately summarize the text,
and what is wrong with others?

The most accurate summary is the second summary.

Issues with the Other Summaries:


1. First Summary: This summary contains inaccuracies. It suggests that market
challengers seek to replace the leader, which is not a universal characteristic.
Market challengers can aim to increase their market share without necessarily
trying to replace the leader. Additionally, the statement that imitating larger
companies is a dangerous strategy during recessions is not explicitly mentioned in
the original text.

2. Third Summary: This summary is inaccurate. It incorrectly states that the first
company in a market regularly attacks distinct market challengers and followers
to maintain its position, which is not stated in the original text. The summary
oversimplifies the strategies of market leaders and followers.

The second summary accurately captures the main points about market leaders,
challengers, and followers without introducing significant inaccuracies.

Ex. 3, p. 80 (c)

Find words in the text which mean the following.

1. Market Share
2. Promotional Strategies
3. Monopoly
4. Competitors
5. Slogan
6. Market Segmentation
7. Niche Market
8. Competitive Advantage
9. Total Sales
10. Recession

TRANSLATION PRACTICE p. 84

1.Market structure is the nature and degree of competition among firms


operating in the same industry.
2. Different companies occupy different positions in the market, thereby
influencing the price differently.
3. Perfect competition is a market structure that is very rare but is essential, as
economists use it to evaluate other market structures.
4. Perfect competition is characterized by a large number of independent buyers
and sellers who are well-informed about the market situation and deal with
identical products.
5. Monopolistic competition is characterized by the individualization of products,
meaning sellers try to attract more buyers by diversifying their goods.
6. Consumers pay more for a product because the cost of advertising is included
in the production price.
7. Oligopoly is a market structure where a small number of producers dominate
the market and set the price for the produced goods.
8. However, many oligopolists try to compete not based on price but by changing
the characteristics of their product, thereby outperforming competitors.
9. Monopoly is a market situation with only one seller of a particular product.

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