What is the Penguin Effect?

Example

Suppose two companies A & B share 30% and 40% of the market, respectively. Company A can either choose to hold its market share or increase it by launching new products and options to customise those. However, this strategy is expensive and doesn’t guarantee success because company B emulate the same strategy. Therefore, Company A is better off to wait for a window of opportunity and, subsequently execute strategies that Company B cannot replicate.