follower's advantage

follower's advantage definition - business

follower's advantage

The reduced likelihood of failure when a company isn't the first to market or use a new good or service. For example, an electric utility doesn't adopt a new pollution-control system until it has been proven successful by another utility. A follower is able to learn what works and what doesn't work before committing its own resources to something. Compare first-mover's advantage.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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