Market Challenger

A firm that has a market share below that of the market leader, but enough of a market presence that it can exert upward pressure in its effort to gain more control. Market challengers are able to jockey for industry leadership several ways: challenging the market leader on price (direct approach), increasing product differentiation or improving customer service (indirect approach), or launching an entirely new product or service in order to change the field (radical approach).

Companies with low market share are generally not in a position to influence prices, and are often susceptible to the actions of larger firms. Market challengers, being in a position of becoming the dominant player, may face a high degree of risk because they must take potentially radical steps in order to draw away consumers from the market leader. Each of the three primary strategies carries with it a unique risk, with the direct approach and radical approach posing more risk due to the high potential costs.


Investment dictionary. . 2012.

Look at other dictionaries:

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  • market challenger — A firm that is fighting to increase its market share. Generally, such a company is second in market share and aggressively challenging the market leader …   Big dictionary of business and management

  • market challenger strategy — /ˌmɑ:kɪt tʃrelɪnd ə ˌstrætədʒi/ noun a strategy adopted by a company which is challenging the market leaders through pricing, promotion or product design ● It’s a new aggressive company adopting a market challenger strategy …   Marketing dictionary in english

  • market leader — ➔ leader * * * market leader UK US noun [C] COMMERCE ► the company that sells most of a product or service in a particular market: market leader for/in sth »The supermarket chain is now the market leader in baby goods. »His aim is to become the… …   Financial and business terms

  • market follower — UK US noun [C] COMMERCE ► a company that is not the leading company in a particular market but that chooses to keep its position rather than competing in a forceful way to increase its share of the market: »Market followers must know how to hold… …   Financial and business terms

  • market nicher — UK US noun [C] MARKETING, COMMERCE ► a company that sells a product or service that few other companies provide: »A true market nicher has a distinctive product that appeals strongly to a particular consumer group. → Compare MARKET CHALLENGER(Cf …   Financial and business terms

  • Challenger Institute of Technology — Established 1898 Type Technical and further education Director Ms Liz Harris (Chief Executive Officer) Location Fremantle, W.A …   Wikipedia

  • Challenger disaster — ▪ United States history  explosion of the U.S. space shuttle orbiter Challenger, shortly after its launch from Cape Canaveral (Canaveral, Cape), Fla., on Jan. 28, 1986, which claimed the lives of seven astronauts.       The primary goal of… …   Universalium

  • challenger — noun ADJECTIVE ▪ closest, formidable, main, nearest, serious, strong, worthy ▪ Her nearest challenger is the vice president. ▪ …   Collocations dictionary

  • Challenger Job-Cut Report — A report, released monthly, that provides information on the number of announced corporate layoffs. The Challenger Job Cut Report is produced by Challenger, Grey Christmas and tracks layoffs by industry and region. The report is an indicator used …   Investment dictionary

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