What is a runner-up firm called that aims to maintain its market share without aggressive competition?

The term for a runner-up firm that seeks to maintain its market share without engaging in aggressive competition is indeed known as a market follower. Market followers typically have an established presence in the market but do not seek to compete head-to-head with the market leader. Instead, they observe the strategies and successes of other companies, particularly the market leader, and adapt accordingly.

A market follower may choose to imitate successful product features, pricing strategies, or marketing approaches without risking significant investment in innovation or aggressive tactics. This approach allows them to maintain their share of the market while minimizing risk and the potential for conflict with larger competitors. The focus for these firms is on sustaining their position rather than expanding aggressively, which can sometimes lead to a stable and profitable business model.

In contrast to market challengers, who actively try to compete with and dethrone the market leader, or market leaders, who dominate the market, the strategy of a market follower emphasizes caution and observation rather than direct confrontation. This distinctive approach empowers follower firms to remain relevant and profitable within the marketplace while avoiding the pitfalls that can accompany a more aggressive competitive stance.