Historical Context
The term “Fast Follower” emerged prominently in business strategy discussions during the late 20th century. It describes companies that swiftly adopt and improve on the innovations introduced by first movers. While the first mover is credited with the initial breakthrough, the fast follower refines the concept, mitigates early-market risks, and often achieves greater success by capitalizing on the foundational work of the pioneers.
Types/Categories
- Product Innovation Follower: These companies rapidly bring to market an improved version of an innovative product.
- Service Innovation Follower: Firms that quickly adopt and enhance new service models.
- Technological Follower: Enterprises that focus on refining and implementing cutting-edge technologies after initial deployment by competitors.
- Market Entry Follower: Companies that enter new geographic or demographic markets shortly after a pioneer has demonstrated the market’s viability.
Key Events
- Microsoft vs. Apple: Microsoft entered the graphical user interface market shortly after Apple, improving upon it and dominating the PC market.
- Facebook vs. MySpace: Facebook enhanced the social networking experience initiated by MySpace, becoming the leading social media platform.
- Samsung vs. iPhone: Samsung quickly adopted and iterated on Apple’s smartphone innovations, achieving significant market share.
Detailed Explanations
Fast followers leverage several strategic advantages:
- Reduced R&D Costs: By observing the first mover, fast followers can minimize research and development expenses.
- Market Feedback: Fast followers benefit from customer feedback on the first mover’s product, allowing them to refine and enhance their offerings.
- Lower Risk: Fast followers face reduced market uncertainty as the viability of the product or service has already been established by the first mover.
- Speed to Market: Fast followers capitalize on streamlined product development cycles and quicker go-to-market strategies.
Importance
The fast follower strategy can be crucial for companies operating in rapidly evolving industries. By learning from the successes and failures of pioneers, fast followers can:
- Achieve significant market share
- Enhance brand reputation as an innovative improver
- Avoid costly mistakes associated with being the first to market
Applicability
Industries where fast follower strategies are prevalent include:
- Technology (smartphones, software)
- Pharmaceuticals (generic drugs)
- Consumer electronics
- Retail (online shopping platforms)
Examples
- Google Search: Although Google was not the first search engine, it rapidly followed and surpassed its predecessors by refining search algorithms.
- Toyota Hybrid Cars: Toyota wasn’t the first to develop hybrid technology but improved upon existing concepts to dominate the hybrid vehicle market.
Considerations
- Intellectual Property (IP) Issues: Fast followers must navigate IP laws to avoid infringement on the first mover’s patents.
- Timing: Success hinges on entering the market neither too early nor too late.
- Brand Perception: Companies must ensure they are seen as innovators rather than mere imitators.
Related Terms with Definitions
- First Mover Advantage: The competitive edge gained by the first company to enter a specific market.
- Late Mover: Firms that enter the market significantly later and attempt to capture niche markets or introduce substantial innovations.
Comparisons
| Aspect | First Mover | Fast Follower |
|---|---|---|
| Risk | High | Moderate |
| Cost | High (R&D, market education) | Lower |
| Innovation Source | Original | Enhanced/Improved |
| Market Feedback | Limited | Extensive |
Interesting Facts
- Studies indicate that fast followers often outperform first movers in terms of profitability and market share.
Inspirational Stories
- Samsung’s Rise: Samsung’s adaptation and improvement of smartphone technologies allowed it to become a major player in the global market, despite Apple being the first mover.
Famous Quotes
- “The second mouse gets the cheese.” — Anonymous
- “Being the first in a new field doesn’t guarantee success. Sometimes it’s the second or third entrant who innovates the concept and leads the market.” — Stephen Covey
Proverbs and Clichés
- “Second to none.”
- “Imitation is the sincerest form of flattery.”
Expressions, Jargon, and Slang
- Fast Follow: Quickly adopting and enhancing another’s innovation.
- Me-Too Product: A product that mimics an existing one with minor enhancements.
FAQs
Is being a fast follower less prestigious than being a first mover?
Can a company be both a first mover and a fast follower?
References
- Lieberman, M. B., & Montgomery, D. B. (1988). First-Mover Advantages. Strategic Management Journal.
- Schilling, M. A. (2003). Technological Leapfrogging: Lessons from the U.S. Video Game Console Industry. California Management Review.
Summary
The fast follower strategy presents a balanced approach to innovation and market entry. By capitalizing on the pioneering efforts of first movers, fast followers reduce risks and costs, optimize timing, and achieve substantial competitive advantages. This strategy has been successfully employed across various industries, proving that being first is not always synonymous with being the best.
For more information and detailed case studies, explore related terms such as First Mover Advantage and Market Strategy in this Encyclopedia.
