Woodty's Competitors
It can be concluded that there was a significant decrease in the proportion of revenue market share of Woodty’s from 41.59% in 2014 to 20.92% in 2016. In addition, Woodty’s had the lowest proportion of revenue market share in the three brands in 2016, which was conducive to charge a price premium over competitors.
A reduction in market share during these three years indicates that Woodty’s brand is becoming less preferred among competitors. There may be one reason to explain the decline in the revenue market share of Woodty’s brand. Jones toys came into existence in 2015 that posing a potential threat on it, Jones brand quickly seized 31% of revenue market share through lower price (£300) and cost leadership strategy (£180) when it entered
the market in 2015. After that, it ranked the second position at 36.32% in 2016 within the incremental sales trend, which was followed by Woodty’s brand (20.92%). Another possible reason was the rising number of lower profitable customers of Woodty’s in 2006 due to the new customer reward system.
In 2015, Woodty’s relative market share up to 95.09% was close to the leading position of Dulop within the market, indicating that the relative competitive advantage in the competition is obvious. Nevertheless, the period from 2015 to 2016 saw a sharply drop in the percentage of unit relative market share and reached its lowest point at 34.56% in 2016, which illustrated that Woodty’s brand was easier to be led by the largest competitor--Jones due to its relative peak position.
A reduction in market share during these three years indicates that Woodty’s brand is becoming less preferred among competitors. There may be one reason to explain the decline in the revenue market share of Woodty’s brand. Jones toys came into existence in 2015 that posing a potential threat on it, Jones brand quickly seized 31% of revenue market share through lower price (£300) and cost leadership strategy (£180) when it entered
the market in 2015. After that, it ranked the second position at 36.32% in 2016 within the incremental sales trend, which was followed by Woodty’s brand (20.92%). Another possible reason was the rising number of lower profitable customers of Woodty’s in 2006 due to the new customer reward system.
In 2015, Woodty’s relative market share up to 95.09% was close to the leading position of Dulop within the market, indicating that the relative competitive advantage in the competition is obvious. Nevertheless, the period from 2015 to 2016 saw a sharply drop in the percentage of unit relative market share and reached its lowest point at 34.56% in 2016, which illustrated that Woodty’s brand was easier to be led by the largest competitor--Jones due to its relative peak position.