CREATE A COMPANY BY COPYING. COPYCAT

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Setting up a company by copying

The idea of creating a business by copying refers to the creation of a business that is based on an existing and successful business model. The strategy is to imitate the business model of an established company and do it better or in a different way in order to capture market share and generate profits.

This strategy has some advantages, such as:

• Lower risk: by copying an already successful business model, you can reduce the risk of business failure by having a proven model.
• Lower investment: the investment needed to create a company based on an existing business model may be lower than the investment needed to create a completely new business model.
• Knowledge of the market: By copying an existing business model, you can get a clear idea of how the market works and what customers are looking for.
• Innovation: by copying an existing business model, areas of improvement and opportunities for innovation can be identified to improve the model.

However, there are also some disadvantages in setting up a company by copying, such as:

• Competence: by imitating a successful business model, you can compete directly with the company that is already in the market and has established its brand.
• Lack of originality: a company that builds on an existing business model may be perceived as lacking originality and may have difficulty differentiating itself from the competition.
• Risk of legal action: copying an existing business model can lead to legal problems and there may be risks of lawsuits from the company being imitated.
• Difficulty in adapting to changes in the market: A company that builds on an existing business model may find it difficult to adapt to changes in the market and stay relevant.

The strategy of starting a business by copying has advantages such as lower risk, lower investment, market knowledge and innovation, but it also has disadvantages such as competition, lack of originality, risk of lawsuits and difficulty in adapting to changes in the market. It is important to weigh these factors when considering the option of setting up a copycat business.

Success stories of companies created by copying other companies

It is important to note that the idea of "copying" a company can be controversial, as care must be taken not to infringe intellectual property rights, trademarks or patents of the original company. However, Here are some examples of companies that have been inspired by successful business models and have succeeded:

• Alibaba: Alibaba, China's largest e-commerce platform, was inspired by Amazon's business model. However, Alibaba adapted the model to the needs of the Chinese market and created a service that is now an essential part of online commerce in China.
• Facebook: Facebook was inspired by the models of MySpace and Friendster, but improved it by focusing on connectivity and social interaction. The result was a social platform that became the largest in the world.
• Google: Google was inspired by the business model of existing search engines, but improved the search algorithm and user interface to create a more effective and user-friendly experience.
• Spotify: Spotify was inspired by Apple's iTunes business model, but improved on it by creating an online music streaming service that allowed users to listen to music anywhere, anytime.

In summary, these are just a few examples of companies that have been inspired by successful business models and have achieved success by adapting the model to the needs of their market or improving the existing model. It is important to note that these examples do not involve the direct copying of an existing business model, but the adaptation and improvement of the model to meet the specific needs of the market.

"Mee too" is the most common strategy, and the least successful, especially when we limit ourselves to simple copying. In this case, we are talking about the strategy of the follower who has no appreciable difference or competitive advantage.  It is quite another matter to the strategy of the challenger who aspires to leadership and learns from the mistakes of the leader or pioneer and incorporates differentiating values into his product.  There are interesting examples of failures by innovative entrepreneurs and successes of those who follow in the footsteps of the pioneering leader by perfecting their idea. Applying the innovation or creativity to existing companies you can create some differentiation that will lead to a real opportunity. If you don't have a new idea to turn into an opportunity and create your business, you can always follow in the footsteps of successful projects.

Xiamomi is a paradigmatic and current example of this strategy. Bill Gates is said to have originally copied the operating system designed by Steve Jobs. Mark, Oliver and Alexander Samwer are three German brothers who have made a lot of money by copying successful businesses. They started a few years ago with the incubator of start-up Rocket Internet and from it developed companies such as Lazada, the Indonesian Amazon, MyVideo, the German Youtube, or Frazr and StudiVZ, the German Twitter and Facebook respectively. We constantly hear about the importance of being innovative and offering something different to the market as the key to success in finding an opportunity. But don't be fooled, Most successful companies do not start from scratch but by copying previous ideas and business models, including Mark Zuckenberg and Facebook. 

They do so by improving what was already there, offering some differential element in some aspect of the business, either in core aspects such as basic functionalities, cost structure (and price) or the way of marketing, or in more secondary aspects such as design, presentation, customer service or certain complements. The advantage of internet-based businesses is that you don't need to travel to find out about them, from your home you can see perfectly well what is happening in your sector of activity in the online market in other countries. And, bearing in mind that, obviously, it is not enough to copy, but it is necessary to adapt the business model to the characteristics of the market in which you are going to operate.

One form of copying can be the transfer of business ideas from one country to another. Burger or pizza restaurants are examples of transferring ideas that over time go through processes of adaptation to new markets. On many occasions, You don't even need to innovate; you just need to be the first in the market to bring something that is working elsewhere. For example, the first video store opened in Spain in 1981, Video Instan in Barcelona (now threatened with closure), an idea "imported" as a result of a trip to Europe by its promoters. Travelling is often a great help in detecting new businesses that are already operating in other countries or in other cities. Migratory phenomena open doors to the transfer of businesses destined for new immigrant residents: Areperas, specialised shops, etc.

One recommendation is not to fall into the trap of believing that a successful business in one country is guaranteed to be successful in others. Cultural and legislative differences, or the existence of products that already cover a specific need, must be taken into consideration. Existing ideas can be easily copied, and existing ideas can beor what is more complicated is to execute it properly in order to turn it into a real opportunity.This is very difficult to copy and that's what we focus on in the mentorDay acceleration programme (+). If we take a look at the reality of the market, it is surprising how many companies coincide in promotions, products and even in the business idea itself. If copying is politically incorrect, taking inspiration from other people's ideas is a strategy that works and has its advantages when looking for business opportunities.

Reduce risks. Very new, disruptive ideas are not good opportunities. Normally the first in a sector has to invest a lot more money in marketing to get customers to know the novelty and buy. It is better to be second or third and let others lead the way, like a snowplow, and burn your resources. The world's most famous search engine GOOGLE was not the firstBy the time he arrived, there were already others who created the customer need. The main advantage of imitating someone else is that it you always have a reference to serve as an example. Not someone to copy, but a reference for how to act. Also, If you enter the market early, you share introduction efforts with the pioneer, and that is also an advantage for the pioneer.

• Seize an opportunity. Nor should we forget that, sometimes, imitating someone else is essential. In other words, if a company closes and leaves me a gap, I am not going to let this opportunity slip away.
• Optimising resources. In the case of SMEs, imitating large companies is a way of optimising their resources. Those who cannot invest in R&D have no choice but to follow in the footsteps of the leader in products and services to avoid being left out of the market. This is a risk-free handicap, as long as they seek innovation in their channel management and customer service. You can offer new solutions there, as this does not require as much investment.
• Imitate with dignity. The flip side of this strategy is that if you do not innovate in some way, you run the risk of always being perceived as second best. In the practice of imitating, or drawing inspiration from others, there are unwritten rules that are key to success: 

• • Improve copying. Successful companies rarely copy an idea one hundred percent, but they are often inspired by what others are doing. It's about taking an idea, modifying it and improving it. And that is no longer copying, it is something different. You may find it very useful to see benchmarking tips (see+).

• • • The strategy of imitation should be seen as a transitional stage. Coming second in a market is not a bad thing, what is bad is to be seen as second best. The way of this so-called imitator is to transmit to the market that, as I am second, I have to do better than the first.

• • Everything that can be imitated. The opportunities and risks of following in the footsteps of others depend very much on what you are imitating. Copying a business idea from scratch is not the same as following in the footsteps of your competitors in some aspect when you already have your own business.
  • Products and services. Sometimes imitation is about entering a segment that you were not in before. This strategy is advisable in order to gain market share that you would otherwise not get.
  • Price. Price imitation should be done very carefully, as the price you put on a product is determining who you are going to compete with and the customer's perception of it. In addition, you must assess whether it is in your interest to enter into a price war with the competition. Generally, the leader is the one who sets the price. And the others follow, so as not to be left out of the market. We see this all the time in shops. In companies it is more complicated, because you have to take into account production margins, among other factors.

The advice of this TIP (+) they can help you a lot!

• Advertising and Communication. If you use a message or colours very similar to the leader, you will go unnoticed because you will be confused with the leader. In the end, you give sales to the leader.
• Ideas from other sectors. It is also common to copy any action, product or service that has worked well in other sectors and adapt it to our own. Or adapt behaviours from large companies to apply them to SMEs. For example, points programmes, which were started by supermarkets and airlines, are now being applied to other sectors such as catering and dry cleaning.
• Imitate a business model. A large part of the companies that exist in the market are based on the imitation - or inspiration, whatever you want to call it - of an existing business model. There are different reasons why this strategy is advisable.
• To seize an opportunity in an emerging market. Seizing an opportunity by imitating others to enter an emerging market is a winning strategy that explains the proliferation of cruise ship or playground companies in a very short space of time.

In this case, the key to successful imitation lies in the entrepreneur's ability to adapt the model to be followed to the local market, and in his or her ability to innovate and stay ahead of competitors entering the market at the same time. To take advantage of emerging markets, you should not limit yourself to looking for ideas from outside. In your market, there are bound to be commercial actions, promotion or business experiences that work in other regions and have not been transferred to all markets. Picking up the baton of a business with a future, which has been ahead of the market.

The moment at which you enter a market is very influential. Successful companies such as Vip ́s in Spain have had to close some shops in Spain when they started their expansion, probably because the local market was not prepared for this formula. Often, the success or failure of a business model is not a question of making mistakes, but of being ahead of the market. And those who come after you learn from your experience, take you as a reference point and say: "You are ahead of the market: "I'm going to do it now because now is the time". It is a winning formula. Take advantage of the opening up of a market previously monopolised by another. In this case, the second-coming is usually doomed to occupy a secondary position in the market. But if the pie is big, it is a more than appetizing position. Again, survivability and success will be in direct proportion to your ability to innovate and differentiate yourself from your competition.