Student Questions - Niche Market vs. Market Follower from Anonymous: MarketingProfs Question 26432

Topic: Student Questions

Niche Market Vs. Market Follower

Posted by Anonymous on 11/12/2008 at 8:04 AM ET 125 Points

Can a company both follow the market leader and a niche market successfully?

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Posted by Steve Moore on 11/12/2008 at 1:18 PM Accepted

Being that this is a student question I am assuming this is part of a school project. If it is part of a project what are some of the specifics of the situation? The question needs some clarification. My first question was why would a company intentionally want to follow the market leader?
Posted by Steve Moore on 11/12/2008 at 1:22 PM Member

I forgot to add this in. To answer the question as it reads, a company could follow the market leader if the two companies are in the same niche.
Posted on 11/12/2008 at 3:12 PM Accepted

It is something you see very often. Operating in a niche market does not mean that you are the only one single company in it. It might be the case for the first company that enters the niche, but soon competition might arise and if there is a leader, followers will come(unless everybody start differentiating the their products/services and their approach to market.

Hope it helps.

Davide