Assessment of Performance Measurement in - St Clements University

1. Leadership: The leadership strategy is directed at taking
advantage of a declining industry whose structure is such that the
remaining firms are above – average profitability and leadership is
feasible vis – a – vis competitors. The firm aims at being firms
remaining in the industry. Once this position is attained the firm
switches to a holding position or controlled harvest strategy, depending
on the subsequent pattern of industry sales. The premise underlying this
strategy is that by achieving leadership the firm is in a superior position
to hold position or harvest than it would be otherwise.
Tactical steps that can contribute to executing the leadership strategy
are the following:
a. Investing in aggressive competitive actions in pricing, marketing or
other areas designed to build market share and ensure rapid retirement
of capacity from the purchasing market share by acquiring competitors
or competitors product lines at prices above their opportunities for sale;
this has the effect of reducing competitors exit.
b. Purchasing and retiring competitors capacity, which again lowers exit
barriers for competitors and insures that their capacity is not sold within
the industry; a leading firm in the mechanical sensor industry repeatedly
offers to buy the assets of its weakest competitors for this reason.
2. Niche: The reason of this strategy is to identify a segment (or
demand pocket) of the declining industry that will not only maintain
stable demand or decay slowly but also has structural characteristics
allowing high returns. The firm then invests in building its position in
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