Customer Quote by Greg Thain
““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.””
About This Quote
Source Article: Business Strategy Insights, 2020
Companies that copy rivals in stagnant markets may gain short‑term share but risk long‑term failure and price erosion.
In simple terms: Copying rivals can boost sales briefly but harms innovation and profits over time.
Key Takeaway
Avoid imitation; focus on genuine innovation.
Themes
competition
innovation
pricing
market dynamics
Mood
cautious
analytical
Type
strategic
business
When to use this quote
- launching new products
- strategic planning
- market analysis
- pricing decisions
Key Concepts
copycat strategy
price erosion
product failure
Questions to Reflect On
- How can firms differentiate without copying?
- What safeguards protect against price wars?
A Different Perspective
Copying may lead to legal issues and brand dilution.
