question archive Theodore Levitt argues that a strategy of product imitation might be as profitable as a strategy of product innovation
Theodore Levitt argues that a strategy of product imitation might be as profitable as a strategy of product innovation
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Theodore Levitt argues that a strategy of product imitation might be as profitable as a strategy of product innovation. In "innovative imitation," as he calls it, the innovator bears the expense of developing the new product, getting it into distribution, and informing and educating the market. The reward for all this work and risk is normally market leadership. However, another firm can come along and copy or improve on the new product. Although it may not overtake the leader, the follower can achieve high profits because it did not bear any of the innovation expense. 15 Keeping that in mind you are required to A) Identify at least two market followers in the Air conditioning (refrigeration) industry of Pakistan (2) B) Analyse their current marketing strategies (5) C) Suggest some new strategies that they can devise to improve their sales and profitability.
