Square, founded in 2010, provides a means for small businesses to process credit and debit card sales without signing up for a traditional credit card arrangement. This is an example of a pioneering new entry.

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Sometimes the key to success with an imitative strategy is to fill a market space where the need had previously been filled inadequately. Entrepreneurs are also prompted to be imitators when they realize that they have the resources or skills to do a job better than an existing competitor. This can actually be a serious problem for entrepreneurial start-ups if the imitator is an established company. As of 2014, Square was processing 30 USD billion in transactions annually. But success triggers imitation. A host of both upstart and established firms have moved into this new segment. While Square has quickly established itself in the market, it now faces strong competition from major competitors, including Apple, Google, and PayPal.

Square, Founded in 2010, Provides a Means for Small Businesses