Strategies for runner-up firms

Question

What are the strategies for runner-up firms?

Answer 1

Strategies for Runner-Up Firms are as follows:

1. Runner-up or second-tier firms have minor market shares than first-tier industry leaders.

2. Runner-up firms can be:

i. Market challengers– employing offensive strategies to make a powerful market position and gain market share.

ii. Focusers– seeking to enhance their lot by concentrating their attention on serving a limited part of the market.

iii. Perennial runner-ups– lacking the competitive strengths and resources to do extra than continue in trailing positions and/or content to pursue the trendsetting moves of the market leaders.