Advantages and Disadvantages Market Follower Strategies

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Advantages and Disadvantages Market Follower Strategies

In today's business world to the inevitable longer than its name competition among companies, as well as marketing strategies employed by a company in marketing their products. Different ways and strategies that will determine the final position of the business for the companies that run them. Because then the business people is not uncommon to always required to innovate, with the idea of ​​thinking that has never existed before, to be able to continue to compete and bring in more customers.

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The strategy in the face of this business competition, usually depending on the scale is also the position of the company in the market. Companies that already have a well established name and its various aspects, is able to implement more complex strategies that can not be done by small companies. But sometimes it is possible, if a small company with its own strategy, can generate the same profits is not impossible even be higher when compared with larger companies though.

Advantages and Disadvantages Market Follower Strategies

Strategy Concept Market Follower

One powerful strategy and is widely used today by the businessman is running a market follower strategy, which has the sense in which an attempt was standing on the other hand do not dominate the market, and the products it sells it to maintain its position. Usually these types of businesses such as developing a strategy undertaken by a market leader, which eventually they will get a good market share at risk tend to be smaller.

This strategy is often called the strategy play it safe or play it safe. Business market follower also often offer the same products and the same even with the market leader, and only further highlight the differences trademark on sales targets, as well as the location or service.

Advantage Strategy Market Follower

For a company or a business that implementing this strategy, it's good to know some advantages as a market follower, among others, as follows:

Obtaining high profits because there is no burden for innovation. Companies do not need to spend large budgets for research purposes and research for product development. The company just follow what the market leader and the trend in the market.

Can take advantage of promotional activities undertaken by a market leader. In the current market leader is doing new product promotion, then that moment follower will observe the response of the market to the product. Do get a positive response, or even just the opposite can not meet existing market needs.

Risk low competition, follower sales in different markets so they can avoid direct confrontation or competition with someone who acts as a market leader.

Losses Market Follower

Not Having a Clear Identity Products

Because the follower had just follow the steps from the market leader in creating a product, it is true follower does not have the characteristics or uniqueness of its own products. The consumer can only identify by name the product and its function, but can not pay attention to the uniqueness or characteristic that owned the product.

Considered As Parasites

Follower is not uncommon following the success of a product. If the market leader in the promotion of new products and get a good response from the market, then at the same time also a follower will present the same or similar products in large quantities but at a cheaper price.

Was More Severe cases or Plow Product Tracing Competitors

Follower often regarded as plagiarism products owned by the market leader. This is because it is often found on the market a variety of products belonging to the follower who has a name and packaging are very similar to market leader. So that consumers do not realize from the outset often be misled by the product.

Market competition is so tight occurred, prompting some businesses to be able to immediately apply a follower strategy. Where will they follow the steps of a market leader in many aspects such as product creation, promotion and market segments.

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Such a strategy can indeed be profitable, especially for a young business standing or still in the small-scale businesses. one of the most visible advantages is that it can determine the response of the market to new products and what products desired by the consumer.

But being a follower does not mean having to forget everything, or continue to the canal following the steps leader without innovation and action. Without being supported by real action, then the product will walk away without any significant development, does not have a characteristic or a uniqueness that can be recognized by the market. If you are running a business that is still in the stage of followers, then try to be a follower who wants to always develop itself into a better direction again.

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