Explain one reason why a business that has the second largest market share would be keen to become market leader.

One reason why a business that has the second largest market share would be keen to become the market leader is due to the potential for increased profitability. Here's a step-by-step explanation:

1. Market Share: Market share refers to the percentage of an industry's sales that a particular business has. The business with the largest market share is considered the market leader.

2. Profitability: Generally, a larger market share translates to higher sales volumes. This can lead to increased profitability due to economies of scale, which occur when the cost of producing each additional unit decreases as the volume of output increases.

3. Brand Recognition: Being the market leader often comes with increased brand recognition and a reputation for being the top in the industry. This can attract more customers and further increase sales and profitability.

4. Competitive Advantage: Market leaders often have a competitive advantage, such as superior access to resources or a larger customer base. This can make it more difficult for competitors to challenge their position.

5. Investor Appeal: Businesses that are market leaders often attract more investors, as they are seen as less risky and more likely to provide a return on investment.

In conclusion, the desire to become a market leader is driven by the potential for increased profitability, brand