The competitive positions of industry leaders normally range from “stronger than average” to “powerful.”
2. Leaders are typically well known and strongly entrenched leaders have proven strategies.
3. The main strategic concern for a leader revolves around how to defend and strengthen its leadership position, perhaps becoming the dominant leader as opposed to just a leader.
4. The pursuit of industry leadership and large market share is primarily important because of the competitive advantage and profitability that accrue to being the industry’s biggest company.
CORE CONCEPT: The two best tests of success of a stay-on-the-defensive strategy are (1) the extent to which it keeps rivals in a reactive mode, struggling to keep up and (2) whether the leader is growing faster than the industry as a whole and wresting market share from rivals.
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