What should managers do if their company has a low market share in North America?

When a company has a low market share in a region like North America, it indicates that it is struggling to compete effectively within that market. Therefore, reviewing competitive weaknesses and taking corrective actions is crucial. This approach entails analyzing the company's position in relation to competitors and identifying areas where the company can improve.

Management should conduct a SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) to understand both internal and external factors affecting their market position. This analysis can help highlight specific weaknesses, such as inadequate marketing strategies, product quality issues, or pricing strategies that may not be competitive. By addressing these areas, the company can develop targeted strategies to enhance its market presence and potentially increase market share.

Taking corrective actions based on this review can involve various strategies, such as improving product quality, adjusting pricing, implementing better marketing strategies, or enhancing customer service. This comprehensive approach is vital for fostering growth and awareness within the market and ultimately improving the company’s competitive positioning.

In contrast, other options might lead to stagnation or further decline in market share. For example, ignoring competitive weaknesses would prevent necessary adjustments, while merely increasing advertising expenditure without addressing underlying issues may result in wasted resources. Similarly, enhancing pricing strategies or changing them without making corresponding improvements