Fastfollowing

Fastfollowing refers to the business strategy of quickly imitating a successful product or service introduced by a competitor. Instead of investing heavily in pioneering innovation, a fastfollower waits for a market leader to prove the concept and establish demand. Once the market is validated, the fastfollower then enters the market with a similar offering, often with improvements or a lower price point. This approach aims to capture a significant share of the market without bearing the full costs and risks of initial innovation.

The primary advantage of fastfollowing is reduced research and development expenses and a lower risk of market failure. By observing the early adopter market and competitor strategies, fastfollowers can learn from mistakes and optimize their own product development. They can also benefit from established supply chains and distribution channels that a first-mover might have had to build from scratch. However, fastfollowing can also lead to a perception of being unoriginal and may face challenges in differentiating their product from the market leader.

Companies that employ a fastfollowing strategy often possess strong manufacturing capabilities and efficient market analysis skills. They are adept at reverse-engineering, incremental innovation, and rapid product deployment. Success in fastfollowing depends on the ability to quickly identify market opportunities, adapt existing technologies, and execute effectively to gain market traction before the market becomes saturated or the original innovator solidifies their dominance. This strategy is particularly prevalent in industries with rapid technological change.