““If competitors are determined to grow in a static market, they may start to break the orderly market rules. Producing copies of rivals’ products is tempting because in the short term it ‘steals’ share and makes money. Although competitors with strong technological and marketing skills are unlikely to launch exact copies of rival brands, it is estimated that 97% of new products are not genuine innovations.6 The failure rate of new products is extremely high, around 90% two years after launch, so even though differentiated brands on the whole perform better than me-toos, me-toos are common in markets where innovation is slowing down. Once they get a hold in an industry, there is an inevitable downward pressure on prices.””
