Who is a market follower?

Who is a market follower?

The market follower is the company which follows another one that has already gained its foothold in the market. In the initial phases of its business, the follower obviously has a smaller market share on account of the existing firms market share taken up by the existing firm. However, the follower may gradually work upon the products and services of the market leader, bringing about certain changes or modifications in it and then ultimately outshine the market leader . They can be a serious threat to the market leaders as they may copy or imitate the products and services and marketing efforts of the market leader . A common example is the Chinese market which supplies imitation goods of branded products at throwaway prices.