Question

What is the key strategic issue that faces industry leaders?

a)Whether to pursue a large market share globally as well as domestically
b) Whether to acquire weaker rivals
c) How to maintain the firm's overall leadership position in the industry
d) Whether to lower prices faster than competitors
e) Whether to aggressively pursue experience curve effects and scale economies

Answer 1

The key strategic issue that faces industry leaders can vary depending on the specific industry, competitive landscape, and company objectives. However, among the options provided, one key strategic issue that often faces industry leaders is:

c) How to maintain the firm's overall leadership position in the industry

Step-by-step explanation:

Maintaining a leadership position in the industry is crucial for industry leaders to sustain their competitive advantage and long-term success. It involves strategies aimed at staying ahead of competitors, continuously innovating, adapting to market changes, and meeting evolving customer needs. This strategic issue encompasses elements such as developing and leveraging core competencies, investing in research and development, fostering innovation, building strong customer relationships, and effectively managing resources to stay at the forefront of the industry.

While other options, such as pursuing a large market share globally, acquiring weaker rivals, lowering prices faster than competitors, or pursuing experience curve effects and scale economies, can be important considerations for industry leaders, maintaining overall leadership position is often a central strategic objective that influences decision-making across various aspects of the business.