company within a market that has the largest market share , such as McDonald's or Procter & Gamble. Dominant firms have a competitive advantage by virtue of their size, name recognition, and resources. They may hold onto their dominance through various strategies, including innovation , brand extension , and price wars , that trailing firms do not have the resources to match. Dominant firms often have greater influence with distributors and can get their products into more retail outlets and in better display positions than trailing firms.