ABSTRACT
The reaction to the competition from the enterprise is partly dependent on the position the enterprise occupies in the market. Moreover, the reaction of large enterprises with a multiplicity of products will depend on the product for which the competition arises. Every enterprise has been able to occupy a certain place in the market and will also behave accordingly: as market leader, challenger, follower or niche. The market leader is in general a large, dominant enterprise with the capacity to set the tone in the market in relation to price changes, the introduction of new products/services, distribution cover and promotional expenditure. The profitability of enterprises increases when market share increases because there will be a greater return on their investment. Niche players focus on a small group of enterprises within a segment with specific needs that cannot be fulfilled by the market leader, due to its large scale.
