market follower

Definition

A company which enters a particular product market after another firm has become well established in that market. The follower starts with a much smaller market share but can benefit from the marketing efforts aimed at consumer education expended by the front-running firm.

Use market follower in a sentence

While Apple may be the market leader in technology, they have competition from several market followers such as Samsung and HTC.

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The market follower had seen the tremendous demand that existed for the new technology so they benchmarked the company and entered the industry.

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The small firm got its break by being a market follower to its larger predecessor, the larger firm before it had already laid the consumer education before them, allowing the small firm to expand from the larger firm.

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