Imitation Strategies
Why Do it? Imitation is another strategy for minimizing the risk of downside loss associated with new entry. Imitation involves copying the practices of other firms, whether those other firms are in the industry being entered or from related industries. This idea of using imitation strategies to improve firm performance at first appears inconsistent with the argument at the start of the chapter that superior performance arises from the qualities of being valuable, rare, and inimitable. An imitation strategy cannot be rare or inimitable. Although this may be true, an imitation strategy can still enhance firm performance because a successful new entry does not need to be valuable, rare, and inimitable in terms of every aspect of the firm’s operations. Rather. Imitation of others’ practices that are peripheral to the competitive advantage of the firm offers a number of advantages.