What is copycat economy?
In today’s world, many products see themselves being copied and commoditized not long after they first appear in the market. Services also faced the same problem of imitation and commoditization. Barriers to entry are extremely low because of the free flow of information on the Internet, and technologies help to make copying much easier.
Welcome to the Copycat Economy, where we will find competition getting increasingly intense, markets getting saturated faster, prices getting lower, margins getting thinner, and customer loyalty dropping and so on.
Without much differentiation of products and services, companies will then be forced to compete on prices alone. So they slashed their prices and hope to take back a smaller profit margin in order to keep their businesses going on.
Companies are also forced to do anything to keep their businesses, including mergers and acquisitions, restructuring, retrenching, outsourcing, etc. They ended up doing things that has no strategic sense, and yet have long-term detrimental effects.
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