ITPEC FE Morning October 2018 Question 69

Competitive Strategies (Kotler) — Leader strategy targets the entire market to maintain dominant share

Kotler's competitive position model defines four market roles based on a company's relative position:

• •Leader: Holds the largest market share. Uses an omnidirectional strategy — targets all customers to maintain/grow profit, reputation, and market share.
• •Challenger: Attacks the leader through differentiation (products, services, channels) to seize share.
• •Nicher: Focuses limited resources on a specialized segment others ignore.
• •Follower: Minimizes costs by imitating the leader's strategies to survive.

The correct answer is c) — omnidirectional strategy targeting all market customers to maintain profit and secure optimum market share.

Why not others:
- a) Nicher strategy — concentrating on a specialized, underserved market
- b) Challenger strategy — differentiation to seize market share from the leader
- d) Follower strategy — suppressing costs and simulating (imitating) target companies

Key rule: Leader = largest share → defends by covering the entire market (omnidirectional), not a niche or imitation approach.

AI-generated — may contain errors