What indicates that a business may have a dominant position in the market?

A business may have a dominant position in the market when its market share exceeds a specific threshold, typically considered to be over 40%. This significant share implies that the business has considerable control over its market, enabling it to influence pricing, supply, and potentially the behavior of competitors. A high market share often leads to fewer competitive pressures, allowing the company to operate with more freedom compared to those with smaller market shares.

While uniqueness in a product, global operations, or competitive pricing strategies are indicators of a strong business presence, they do not directly determine market dominance. Unique products might attract niche markets, but they don't guarantee dominance across a broader market. Similarly, having global operations indicates reach but does not equate to dominance within a specific market structure. Offering the lowest prices could capture market segments but not necessarily indicate a dominant position, especially in markets where competition drives prices lower.

Therefore, high market share serves as a clear quantifiable measure of market power, making it the most relevant indicator of a business's dominant position in the market.