Firms that occupy second, third, and lower ranks in an industry can adopt two postures in responding to competition. First, they can attack the leader and other competitors in an aggressive bid for further market share. Second, they can
A) not worry about the immediate future and focus on long-term results (market maturation).
B) play ball and not "rock the boat" (market followers).
C) give up and quit (market abandonment).
D) relinquish their own share to industry leaders (market capitulators).
E) form alliances with enemies (market organizational constriction).

Question

Quizplus · Accepted Answer

The second option, playing ball and not "rocking the boat", is a common strategy for firms that cannot compete with the leader in terms of size or resources. These firms often choose to follow the leader and adopt similar strategies in order to maintain their market share and avoid direct confrontation. This strategy may also involve focusing on niche markets or unique value propositions that the leader cannot easily duplicate.

Firms That Occupy Second, Third, and Lower Ranks in an Industry