An industry leader has the following major characteristics:
Brand Awareness: This implies the degree to which a particular brand is recognized by customers. The brands of industry leaders are requested by customers most often when a specific product is to be purchased due to the brand’s ready acceptance and popularity.
Regulatory Advantages: Industry leaders push for various market-access regulations, which give them competitive regulatory advantages in the market. These regulations come in the form of patents and trademarks. The regulations are granted by the government or other regulatory agencies to prevent other firms from developing similar products or using similar processes in the business for a stipulated time frame. Industry leaders also combine their patents to create entry barriers and discourage entry of new firms in their target market.
First Mover Advantage: This implies the benefit of being the first firm to enter a market with a unique product or service. The first mover advantage of industry leaders enables them to create a brand name and acquire copyright protection. It also helps the industry leaders to maintain a loyal customer base due to the absence of proper substitutes.
Dominance: Industry leaders have high dominance in the market. This dominance can be of the following types: