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Theodore Levitt argues that a strategy of a product
imitation might be as profitable as a strategy of
“Innovative Imitation”-the innovator bears the
expense of the product.
Achieve high profits.
Creates a image of the product.
“Conscious parallelism” are common in capital
intensive and homogeneous product industry.
Product differentiation is low
Price sensitivity runs high
Offers similar to buyers by copying from leaders
Must know how to retain old customers acquire new
The best example of counterfeiting is selling the
originals via piracy.
Also known as Black market follower strategy.
Music firms, Apple and Rolex watches have been
plagued by counterfeiter problem.
Emulates the leader’s products, name and packaging
with slight variation.
Example: if you get watches from RADO as RADA and
bags from GUCCI as GUCCA then that is cloning.
Imitation is the best form of flattery which can cause
the Leader a huge dent in the profit margins.
They make use of the hard earned brand equity and
give a product with same characteristics at low price.
They offer a product with compromised quality.
Imitation jewellery is the best and largest example of
It is often termed as white collared market strategy.
They have similar products but try to adapt from
They can soon become Market Leaders as they can
adapt, learn and improve.
Cars like Alto, Zen are adapters and adapt the best
qualities from each other by changing the style of the
Can achieve higher profits since it did not bear the
Can sell the product in cheaper price and attract more
Since customers are already aware of the product the
cost of educating the market is not required
Knowledge about the segment of the customers who
use the product are available.
Reward of all the work given to the market leader
It takes time to overtake the leader
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.
Little innovation is needed to improve the product
which can lead to increase in manufacturing cost.