The rule of business is that when you are a market leader, there are definitely going to be market followers. Many companies come out with a market follower strategy.
3. INTRODUCTION
The rule of business is that when you are a
market leader, there are definitely going to be
market followers. Many companies come out
with a market follower strategy. In fact, in
today’s world the competency of all
companies are so high that innovations are
quickly copied or imitated in different
formats.
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5. MARKET FOLLOWERS
A market follower position can be profitable
as it may be possible to take a share of the large
market created by the market leader, for example by
copying the brand leader at a lower price, or making
something better or cheaper.
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“Leaders think and talk about the
solutions. Followers think an talk about
their problems”
-Brian Tracy-
6. MARKET-FOLLOWER STRATEGIES
Each follower tries to bring distinctive advantages
to its target market - location, services, financing.
Four Broad Strategies
• Counterfeiter
• Cloner
• Imitator
• Adopter
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7. Four Broad Strategies
Counterfeiter
Copies the leader’s product and packages and
sells it on the black market.
E.g. : pirated music/ movie CDs
Cloner
Copies the leader’s product s as it is as well as
name, packaging with slight variations.
E.g. the IBM PC clones
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8. Four Broad Strategies..(cont..)
Imitator
Copies some of the things from leader’s product but
maintains difference in packaging, and other factors.
E.g. car manufacturers imitate the style of one
another.
Adapter
Launches improved products over that of the
innovator’s.
E.g. many Japanese firms are excellent adapters
initially
before into challengers and eventually
leaders
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9. ADVANTAGES
Learn from the market leader’s
experience
Copy or improve on the leader’s
offerings
Strong profitability
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10. References..
Principles and Practice of Marketing -By Jim Blythe
Strategic Marketing: Creating Competitive
Advantage - By Douglas West, John Ford, Essam
Ibrahim
Strategic Marketing Planning - By Colin Gilligan,
Richard M.S. Wilson
Market-Driven Management: Strategic and
Operational Marketing - By Jean-Jacques Lambin,
Isabelle Schuiling
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