Imitator strategy
This strategy is used by companies, which do not have their own distinctive areas. They are gaining leading competitive position, by mimicking the technology, production patterns and strategies of business leaders on the market. Imitation strategy (follower strategy) is based on the acceptance of a small market share, often limited to a few market segments. Companies that use this strategy do not use intensive advertising measures, even though they produce products of good quality.
The result of this strategy is the manufacture of products that are not identical, but related with the products of market leader. A further consequence is the use of advertising and promotion of market leader. Educated customers can appreciate and choose products of imitator. Cost savings in terms of research and development, as well as with regard to promotion, allows the imitator to maintain a steady market share. Sometimes lower prices may encourage people to buy, and therefore can provide imitator access to clients with average income.
Forms of imitation strategies
This strategy may take different variants:
- imitation of a leader in as many segments operated by him as possible,
- selective imitation, imitator follows the leader in some segments, in others not, using a variation of the product.
This strategy is also comprised of the following varieties:
- clone strategy - involves copying the product produced by the market leader, as well as the duplication of its distribution and advertising, etc. The company referred to as a clone does not create anything, only "free rides" on the effort of others. In some case it is simply a forger, who produces a copy,
- imitation strategy - reproduction of certain products of market leader, However, the imitator differentiate product in terms of packaging, pricing, advertising, etc.,
- strategy of improvement - company adapts product and try to make it better than the one that already exist and were created by the leader. He may be threatening leader by improving his products.
Examples of Imitator strategy
- A good example of this strategy is the use of imitation brands. An imitation brand is a generic version of a popular product. For example, a company may choose to create a generic version of a popular brand of laundry detergent, rather than develop its own unique brand.
- Another example of an imitator strategy is the production of knock-offs. A knockoff is a copy of a designer product, made by a different company and sold at a lower price. Such knockoffs are often produced in countries where labor costs are lower.
- A third example of an imitator strategy is the use of reverse engineering. This entails taking apart a competitor’s product and studying it in detail in order to make an equivalent version. This can be done legally, as long as the company does not infringe on the competitor’s patents or trademarks.
- A fourth example of an imitator strategy is the use of copycat marketing. This involves taking an existing product, or service, and marketing it in a similar way to the original product. For example, a company may launch a product that has the same features and benefits as a competitor’s product, but at a lower cost.
Advantages of Imitator strategy
The advantages of the imitation strategy are:
- It is a low-risk strategy that does not require significant investments. This allows companies to enter the market quickly and adapt to changes in the market situation.
- The strategy allows companies to benefit from the experience of the market leaders, which makes it easier to identify the main trends and develop successful strategies.
- This strategy also enables companies to quickly build their reputation and gain trust from customers.
- It allows companies to save costs, since they don't have to spend resources on developing their own products and technologies.
- Imitation strategy also helps companies to establish relationships with suppliers and partners, which can be beneficial for their business.
Limitations of Imitator strategy
Imitator strategy has following limitations:
- It is difficult to differentiate the product from competitors. As the company mimics the technology, production patterns and strategies of business leaders, it is hard to attract customers who are looking for unique products and services.
- It is difficult to compete with the market leader as the company has to invest much more resources to keep up with them and compete on the same level.
- Companies may not fully understand the needs of the market and may not be able to adapt quickly to changes.
- This strategy may lead to a long-term competitive disadvantage, as companies may become too dependent on the market leader and may not be able to develop their own competitive advantages.
- The company may not achieve the same profitability as the leaders on the market, and may not be able to make a profit in the long run.
- Imitator strategy is closely related to several other approaches, which can be used to gain a competitive advantage:
- Tailgating strategy - This involves copying the exact same strategy and tactics used by the competition. The aim is to take advantage of their successes, while avoiding the risks associated with innovation.
- Copycat strategy - This involves taking the basic product ideas of the competition, and then making small refinements to them to create a product that is slightly different and has a unique selling proposition.
- Me-too strategy - This involves taking a product from a successful competitor and simply adding a few features or a slight tweak in design to make it slightly different from the original.
- Piggybacking strategy - This involves leveraging the success of a competitor’s product, by marketing a similar product as an accessory or add-on.
In summary, imitator strategy is a simple and low-risk approach to competing in an established market, and is closely related to several other approaches, such as the tailgating, copycat, me-too and piggybacking strategies. These strategies involve copying or slightly altering a competitor’s product, or leveraging their success to create a unique offering.
| Imitator strategy — recommended articles |
| Flanker brand — Differential advantage — Horizontal diversification strategy — Market niche strategy — Beachhead market — Market follower — Lateral integration — Global marketing strategy — Price and non-price competition |
References
- Zarządzanie strategiczne-wykłady dr Pawła Cabały,
- Leksykon zarządzania, Warszawa 2004 Difin.
