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Variations of this strategy include:
This strategy is typically used by fringe firms, in an industry with one or two dominant companies (in fact, it is sometimes referred to as the "follow the leader strategy").
Its main advantage is ease of use. Extensive marketing research and statistical analysis are not required. The main disadvantage is that it is purely reactive. Price cannot be used as a variable when constructing a marketing mix: it becomes a constant over which the firm has no control.