Advantages Of Pioneer Follower Strategy

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• Pioneer-follower strategies We can see the fact that in any company, the choice of whether to be a pioneer or a follower must be incorporated in the strategic planning process. A pioneer strategy is compatible with the choice of a broad or a focused differentiation strategy. A follower strategy is compatible with the choice of a broad or a focused low-cost strategy. (analogous to Kaplan, Norton, 2004). Indeed, pioneers gain advantage by making first moves in technology, product or marketing innovation. These advantages are called first-mover advantages. Other enterprises are followers, they aim to maximize the late-mover advantages and to minimize late-mover disadvantages. First-mover advantages are: (Thompson, Strickland, 2003: 193) 1) owning the positive image and reputation of being a pioneer 2) reduction of total costs through control of new technology, and supply and distribution channels 3) the creation of a base of loyal customers, 4) having the ability to…show more content…
In most cases, pioneers enjoy benefits in the form of a greater market share; but market share is only one performance measure. Planners must also consider other, possibly more relevant, factors such as profitability, or sales growth. Concentrating on shareholder focus and value-based measurements will increase the chance of making the correct strategic choice. Most current strategic management approaches emphasize the importance of possessing strong internal resources and competencies for implementation. The resource-base determines choice of strategy. A pioneer strategy implies greater R&D and financial resources. A follower strategy implies strength in marketing and production. This is of great importance when allocating limited resources. Understanding internal resources and competencies is the first pillar or strategic analysis. (Đorđe Kaličanin,

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