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.

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2. CONTENT
 Introduction
 Hypothetical market structure
 Market followers
 Market-follower strategies
 Four broad strategies
 Advantages
 References
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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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4. HYPOTHETICAL MARKET
STRUCTURE
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40%
30%
20%
10%
Market Leader
Market Challengers
Market Followers
Market Nichers

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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