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					MARKET FOLLOWERS STRATEGY

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Theodore Levitt in his article, “Innovative Imitation” argued that a product imitation strategy might be just as profitable as a product innovation strategy e.g. Product innovation--Sony Product-imitation--Panasonic

MARKET FOLLOWERS STRATEGY
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Each follower tries to bring distinctive advantages to its target market--location, services, financing

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Four broad follower strategies:
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Counterfeiter (which is illegal) Cloner e.g. the IBM PC clones
Imitator e.g. car manufacturers imitate the style of one another

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Adapter e.g. many Japanese firms are excellent adapters initially before developing into challengers and eventually leaders

COUNTERFEITING

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An imitation which infringes upon a production monopoly held by either a state or corporation. Goods are produced with the intent to bypass this monopoly and thus take advantage of the established worth of the previous product.

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CLONER

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production of a product which is similar in look and functionality with an already established one but not by the original manufacturer. Example are the clones of apple ipods, IBM computers and Macintosh computer.

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IMITATORS

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Copy the style, action, model, mannerism of an original product.

It is to attract the same attention of the customers towards that product.
Example: many car companies are now imitating the hatchback car models of one another as it is the most successful in Indian market.

ADAPTERS


				
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posted:1/30/2010
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