CA Inter P6 · Chapter 13 · Question 8 of 11
Under the ADL matrix, a competitive position that is comparatively rare and is usually attributable to a monopoly or to strong, protected technological leadership is described as:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Dominant
Explanation
The ADL matrix uses five competitive positions: dominant, strong, favourable, tenable and weak. A dominant position is rare and usually comes from a monopoly or protected technological leadership. A strong firm has considerable freedom of choice, a favourable position arises in fragmented industries with no clear leader, and tenable firms perform satisfactorily but are vulnerable to stronger rivals.
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