Final answer:
Competitors are more likely to respond to strategic or tactical actions when taken by a market leader.
Step-by-step explanation:
In the context of market competition, competitors are more likely to respond to strategic or tactical actions when they are taken by a market leader. This is because a market leader often sets the tone and direction for the industry, and competitors are likely to monitor and respond to their actions in order to maintain their own competitive position.
For example, suppose a market leader introduces a new product or service that proves to be successful. Competitors will likely take note of this and may respond by developing their own similar products or services to capture a share of the market.
The principle of competitive response is commonly observed in various industries where market leaders have a significant influence on the market dynamics and competitors strive to keep up or outperform the leader.