Page 251 - GLOBAL STRATEGIC MARKETING

Figure 12.1: The vicious circle of technology and competitive

advantage

New Practical
technology applications

identified

Competitors Firm
follow with embraces
‘me too’ new
strategies technology

Changes of Firm
industry develops
standards or new
new competitive
customer advantage
expectations
(Source: Doole and Lowe, 2008, p. 420)

This is particularly problematic for organisations, and especially the market
leader, who has to keep investing and reinvesting in the latest technology.

Followers and ‘me too’ strategists can copy the market leader without the
added investment and research and development but still gain market
share away from the market leader. An interesting industry to consider is

the games console industry and is highlighted in the following case on the
Xbox launched in 2001.

Case: Xbox

In May 2001 it was announced that Microsoft, a company with vast
resources, planned to enter the games hardware market in November