Final answer:
To imitate a leading company, a competitor goes through stages such as market analysis, feature development, brand building, technological innovation, and strategy adaptation.
Step-by-step explanation:
When a monopolistic competitor earns high profits, it can attract new entrants into the market, leading to increased competition. Competitors may try to imitate successful aspects of the leading company, such as unique product features, brand reputation, or technological advantages. The stages that a competitor needs to progress through to successfully imitate a leading company could include:
- Market analysis to identify the factors behind the leading company's success.
- Development or acquisition of similar or superior features in their products or services.
- Overcoming barriers such as creating a strong brand name and marketing.
- Investment in new technology or innovation to produce more efficiently or to enhance product characteristics.
- Adapting business strategies, including location and service offerings, to directly compete with the leading company.
An innovative approach and the relentless pursuit of new ideas are often the key principles in gaining a competitive edge, especially before other competitors have the chance to catch up.