ITPEC FE Morning October 2020 Question 66
ITPEC FE Morning October 2020 — Question 66 of 80
Kotler's Competitive Strategy — identify market position by share and resources.
Kotler classifies companies into four competitive positions:
- •Market leader — highest market share, sets industry direction
- •Market challenger — not the leader in share, but has large resources and actively attacks the leader to gain share
- •Market follower — lower share, limited resources, copies the leader's strategy without challenging
- •Market nicher — focuses on a small, specialized segment with limited resources
The question describes a company with no high market share but quantitatively large management resources — this matches Market challenger, which has the resources to compete aggressively but hasn't yet captured the top position.
Why not others:
- (b) Market follower has limited resources and avoids confrontation
- (c) Market leader already holds the highest market share
- (d) Market nicher operates in a narrow segment with limited resources
Key rule: Challenger = large resources + not yet the leader = actively fighting for market share.
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