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The 3 Strategies of Market Followers

There are many strategies one can adopt in the business plan. Here we will discuss the market follower strategy. It doesn’t have as large a potential as the market leader approach, but it also doesn’t require the huge resources of the latter approach. The top three behaviors of this approach are to: 1) upset the cart, 2) get noticed and 3) hitch-a-ride.

First is to upset the cart. Here the choice is to create innovations that the market leaders must address. The tactic is to force the leaders to change their standards to address your innovations. A positive result would increase your market share and your influence in the market. This is exemplified by Google(TM). They are forcing the market leaders to change their perspective. This business plan tactic takes great skill, great financing and business stubbornness. Ultimately, you are trying to get the market leaders to blink. This is something the leaders don’t want to do and work to avoid.

Second, you want the market to turn their head to you. This is similar to someone trying to attract a potential new friend. You do things that get you noticed in a positive light by the market and to establish the business as important to be associated with. Your business plan isn’t to directly challenge the market leaders, but to get them to notice and respond to innovations you have proposed and introduced. This tactic is often used by startups to position them for purchase by a market leader. Your goal is to defend your position and instill new customer desires into the market. If you are successful, you could become a market leader or a purchase candidate.

Finally is the hitch-a-ride strategy. This business plan strategy is normally associated with companies in industries that are stable. This company type is content to just follow the pack. They typically don’t innovate nor challenge the industry with new ideas. It’s like they are worn out or have grown old. They just plod along taking what they can get, changing very little and running along with every one else. While they can survive and make money, they are not stars and will not be market leaders unless they make significant changes in how they do business. Of all the strategies, this is a dangerous one for a new company and it is not recommended that a business plan be created with this type of new business in mind.

As has been shown, there are many strategies that aren’t very aggressive. They are not star strategies and they won’t make the huge profits that other types of more aggressive strategies will. As a new business, you should consider a more aggressive stance so that the chances of reward are much greater. True, other strategies are more risky, but so are the rewards.

It is recommended that a more aggressive business plan and business be envisioned than those of the strategies enumerated here. To accomplish this, you would be better using a market leader strategy. There are both more rewards and risks, but the company will be more vibrant.

Source by Michael Russell