ITPEC FE Morning October 2019 Question 69
ITPEC FE Morning October 2019 — Question 69 of 80
Kotler's Competitive Strategy (Market Positions) — identify the market role based on share and strategic aim.
Philip Kotler classifies companies into four competitive positions:
- •Market leader — largest market share, sets industry trends
- •Market challenger — second-tier company that aggressively attacks the leader to gain share
- •Market follower — copies the leader's strategy, avoids risk, maintains current share
- •Market nicher — small market share, focuses resources on a specific segment to build a unique position
The question describes a company with no high market share that aims to increase income by focusing on particular products and services — this is the textbook definition of a market nicher.
Why not others:
- (a) Market challenger — aims to increase share by attacking the leader, not by narrowing focus
- (b) Market follower — imitates the leader rather than seeking a unique position
- (c) Market leader — already holds the highest market share, contradicting the premise
Key rule: "Focus on particular products/services" + "unique position" + "small share" = Market nicher.
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