ITPEC FE Morning October 2018 Question 69
Topic: Business Strategy Management
Which of the following is a leader strategy among the competitive strategies of a company?
Explanation
An omnidirectional strategy covering all customers to keep profit, reputation and the best market share — that is the leader's strategy.
Kotler sorts companies by competitive position:
- •Leader: the largest share; covers the whole market (full-line, omnidirectional) and protects its share and profit
- •Challenger: second tier; attacks the leader with differentiation to take share
- •Follower: imitates the leader quickly and cheaply to survive
- •Nicher: concentrates limited resources on a specialized segment others ignore
Answer (c)
Why not others:
- •(a) — concentrating limited resources on a specialized market others do not enter is the nicher strategy
- •(b) — differentiating in products, service, promotion and channels to seize share is the challenger strategy
- •(d) — keeping development and advertising costs down and quickly copying others' strategies is the follower strategy
Key rule: Match the strategy to the market position: leaders cover everything, challengers differentiate, followers imitate, nichers specialize.
Business Strategy Management · AI-written, may contain errors
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