What does a firm characterized as a "prospector" primarily focus on?

A firm characterized as a "prospector" primarily focuses on innovation and market expansion. This approach is rooted in the desire to leverage new opportunities and develop new products or services that can meet evolving customer needs. Prospectors are typically at the forefront of industry trends, actively seeking out markets where they can introduce fresh offerings. They thrive in dynamic environments where change is constant, and their strategies are aimed at staying ahead of competitors through continuous innovation.

This focus on innovation enables prospectors to cultivate new customer bases and effectively exploit emerging trends. By prioritizing market expansion, these firms can establish themselves in new segments, thus diversifying their portfolio and reducing dependence on existing markets or products. This contrasts with other strategic orientations that may prioritize efficiency, stability, or defending current market positions, which are not the main priorities for a prospector.