Strong Market

Posted in Marketing and Strategy Terms, Total Reads: 346

Definition: Strong Market

Strong market is considered as the market place where the demand exceeds the current supply and there is a huge potential for growth. In spite of heavy competition any Business firm would like to operate in this strong market to get a share of the huge profit potentials. Even if the firm manages to scratch the profits, it will be sensible to do business in this strong market space.

India is considered as one of the strong market with huge growth potential in the coming years. With the current growth rate India’s GDP is expected to beat the GDP of china by 2018. Different sector of the Indian economy are growing at exponential growth thereby providing an interesting option for Business firms.


In this type of strong market pure competition exists where almost all companies compete with each other to get maximum profits and provide similar type of products and services. There is little scope for differentiation in this segment. Hence the entry and exit options into this market become relatively easier. The firms doesn’t have much power whereas the buyers hold power in deciding what they want and are not influenced much by the firms marketing efforts. More over Indians being a price sensitive this strong market will lead to price wars where to gain the consumer attention firms will start pricing the product very low sometimes even below their production cost leading to loss. But this strategy works in the firms favour as more consumers start developing a relationship with the firm which increases the volume sales and hence the profits.



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