What is one indicator of market dominance by a business?

Market share over 40% is a clear indicator of market dominance by a business because it reflects a significant portion of total sales within an industry. When a company holds more than 40% of the market share, it not only illustrates its ability to attract and retain customers but also indicates that it has likely outperformed many of its competitors. This level of market share can provide the company with various advantages, including pricing power, economies of scale, and the ability to influence market trends.

A high market share generally correlates with a strong competitive position within the industry, showcasing that the business has successfully established itself as a leader. It can attract more investment and resources, as stakeholders typically view it as less risky due to its solid foothold in the market.

While industry experience, strong brand loyalty, and high employee satisfaction can all contribute to a business's overall success, they are not definitive indicators on their own of market dominance. Experience may bolster performance, and brand loyalty can sustain sales, but these factors do not directly quantify a company's position relative to its peers. Similarly, high employee satisfaction can enhance productivity and retention but does not inherently impact market dominance metrics. Thus, the percentage of market share serves as a concrete measure that signifies a company's relative power and