Market Follower Strategies

1.Some years ago, Theodore Levitt wrote an article entitled" Innovation Imitation”, in which he argued that a strategy of product imitation might be as profitable as a strategy of product innovation. The innovator bears the expenses of developing the new product, getting it into distribution, and informing and educating the market. The reward for all this work and is normally of market leader. However, another firm can come along and copy or improve on the new product. Although it probably will not overtake the leader, the follower can achieve profits because it did not bear any of the innovation expense.

2.A market follower must know how to hold current customers and win a fair share of new customers. Each follower tries to bring distinctive advantage to its target market-location, services, financing. Because the follower is often a major target of attack by challengers, it must keep its manufacturing costs low and its product quality and services high. It must also enter new markets as they open up.