Imitation: Ignore It At Your Own Peril
In a society addicted to the idolatry of the "next-big-thing", imitation as a business strategy is not exactly the type of sexy or inspiring headlines that grab attention.
And in spite of innumerable examples of companies (Zara, Lilium, TikTok, XiaoMi) large and small, deploying successful imitation strategies, conventional strategy textbooks continue to evangelise the outdated mantra of differentiation beating a straight path to financial success.
By the sheer fact that it has spawned insanely lucrative counterfeit and generic markets, not only is "imitation" a viable strategy, it is also arguably the most invisible of driving force vis-a-vis competitiveness in a "free" market.
The concept of imitation spans the gamut of inspiration to iteration to copycatting - and one too many an "innovation" is oftentimes a mis-labelled imitation - and when strategically leveraged, imitation can speed growth and/or optimise cost.
So when is it strategic to imitate?
❶ New market entry - When you are a new entrant in a market, and want to quickly establish credibility. Especially if the learning curve is steep, imitating successful competitors during the initial phases can provide a valuable opportunity to learn and understand the dynamics of the market.
❷ Resource constraint - When you lack either resources and/or expertise to develop a differentiated strategy, imitation can be a stepping stone strategy. Especially if successful competitors are entrenched, you need a multi-step approach to grandfather out successful competitors.
❸ Standardized products/services - For markets where customers seek standardized products/services - e.g., fast-food, budget airline, and generic pharmaceutical industries - and where there is a history of incremental innovation, imitation may be a practical strategy.
Pivot to differentiation as strategy when:
⓵ Market is becoming saturated, not when it has become saturated
⓶ Customer preferences are shifting, not when it has shifted
⓷ You have sufficient resources to build, and defend, a unique position
What to read next? Try Contrarian Companies That Redefined The Strategy Playbook.
To find out how I can help you and your organisation co-create a Me-Only corporate strategy, click on the button below to connect with me.
And in spite of innumerable examples of companies (Zara, Lilium, TikTok, XiaoMi) large and small, deploying successful imitation strategies, conventional strategy textbooks continue to evangelise the outdated mantra of differentiation beating a straight path to financial success.
By the sheer fact that it has spawned insanely lucrative counterfeit and generic markets, not only is "imitation" a viable strategy, it is also arguably the most invisible of driving force vis-a-vis competitiveness in a "free" market.
The concept of imitation spans the gamut of inspiration to iteration to copycatting - and one too many an "innovation" is oftentimes a mis-labelled imitation - and when strategically leveraged, imitation can speed growth and/or optimise cost.
So when is it strategic to imitate?
❶ New market entry - When you are a new entrant in a market, and want to quickly establish credibility. Especially if the learning curve is steep, imitating successful competitors during the initial phases can provide a valuable opportunity to learn and understand the dynamics of the market.
❷ Resource constraint - When you lack either resources and/or expertise to develop a differentiated strategy, imitation can be a stepping stone strategy. Especially if successful competitors are entrenched, you need a multi-step approach to grandfather out successful competitors.
❸ Standardized products/services - For markets where customers seek standardized products/services - e.g., fast-food, budget airline, and generic pharmaceutical industries - and where there is a history of incremental innovation, imitation may be a practical strategy.
Pivot to differentiation as strategy when:
⓵ Market is becoming saturated, not when it has become saturated
⓶ Customer preferences are shifting, not when it has shifted
⓷ You have sufficient resources to build, and defend, a unique position
What to read next? Try Contrarian Companies That Redefined The Strategy Playbook.
To find out how I can help you and your organisation co-create a Me-Only corporate strategy, click on the button below to connect with me.