User:Youieflynn/Dominance (economics)

Need to add more info on other three sections to the list after first mover

Innovation
It is recognised that firms who place greater importance on product innovation often have an advantage over firms who do not. The significant links to Game theory have are apparent, and in conjunction with empirical evidence, research has attempted to explain whether more dominant firms or less dominant firms innovate more.

Brand Equity
Referring to the value that branding adds over a generic equivalent, Brand Equity can contribute to gains in market dominance for firms who choose to capitalise on it's worth, whether through charging a price premium or other business strategy.

Economies of Scale
As firms expand, production becomes more efficient and costs lower. It has been shown in empirically several times that there is a clear link between profitability and market share, and thus market dominance. The explicit relationship between economies of scale and market shares has also been explored.

Why do firms purse market dominance?

Market Dominance Attractiveness
Why firms want a greater market share is a logical concept with both empirical and theoretical foundations. One of the main driving principles is a firm's profit motive, dealing specifically with why firms choose to maximize their profits. As research links market share to return on investment, it is expected that firms will choose to follow strategies which lead to increasing market share and a more dominant position in the market.