follower advantage

Definition

Leverage available to non-pioneering firms for gaining long-term competitive advantage by virtue of their late entry into a market: as it was with IBM over Apple, and is with Dell over IBM. The follower can benefit from the (1) clarification of the demand-uncertainty and market-uncertainty, (2) knowledge of the effects of changing customer needs and new technologies, (3) opportunity to free-ride the pioneer's investments in consumer-education, (4) distribution channel and infrastructure development, (5) pioneer's mistakes in product positioning and pricing, and in its promotional efforts.