Predator product

A type of Price Leader product where the user benefits are equivalent to and the buyer benefits are less than those of the Standard Leader product.

Example 1:

In Europe, IVAX Corporation has successfully pierced Bristol-Myers' patent wall around Taxol, the leading cancer drug, and was recently approved to launch a copycat version of the drug. IVAX Corporation plans to introduce a generic form of Taxol.
(Year 1999-SIC 2834)

Explanation: IVAX is a Price Leader competitor selling a Predator Price Leader product against Bristol Myers' Standard Leader Taxol.

Example 2:

Heileman has a bevy of small, economy-priced brands that it can sell to supermarket and liquor chains as private labels. Lucky's has taken on Blatz and Von's has adopted Milwaukee.
(Year 1997-SIC 2082)

Explanation: Heileman is a Price Leader company. Its private label beers are Predator Price Leader products in their industry.

Example 3:

Perrigo has rocketed to the top of the private-label non-prescription drug industry. It supplies 857 knock-offs of major brands to discount chains. The stores sell the products under their own labels, at 30-50% less than name-brand prices.
(Year 1993-SIC 2834)

Explanation: Perrigo is a Price Leader company selling Predator Price Leader products in its marketplace.

Example 4:

Multi-level marketers use independent reps to sell dial-around long distance service. These are a cheaper, no-name brand of long-distance with rates occasionally as much as 40% below AT&T's.
(Year 1996- SIC 4813)

Explanation: AT&T is a Standard Leader company in the industry. The dial-around products from the non-branded competitors are Predator Price Leader products.

Example 5:

Walgreen shied away from expanding its mail order operation on the grounds that doing so would jeopardize its drugstore traffic and margins. So, Medco entered the mail order business, and now Walgreen says it plans to expand its mail order service.
(Year 1991-SIC 5122)

Explanation: Walgreen is a Standard Leader in the industry. Its mail order operation was a Low-Extender Price Leader product. Medco is a Price Leader competitor selling a Predator Price Leader product.