ITPEC FE Morning April 2022 Question 66
ITPEC FE Morning April 2022 — Question 66 of 80
The four competitive positions follow a clear pattern:
- Leader expands the total market size by creating new demand (new products, new usage methods) while defending or growing market share. Since the leader already dominates, growing the overall market benefits them most.
- Challenger attacks the leader — either through broad differentiation or by targeting weaknesses and gaps in coverage.
- Follower avoids confrontation with the leader, mimics successful strategies, and prioritizes stable profits over risky expansion.
- Nicher targets a narrow segment ignored by larger players and concentrates resources to dominate that specific niche.
Why not others:
- (a) Differentiation attack on competitor weaknesses → Challenger strategy
- (b) Capturing a niche that high-ranking companies ignore → Nicher strategy
- (c) Copying the leader and prioritizing stable profits → Follower strategy
Key rule: Leader = grow the whole market; Challenger = attack; Follower = copy; Nicher = hide in a corner.
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