First-mover Advantage

Knowledge Center

   

Description of First-mover Advantage. Explanation.

Contents

  1. Summary
  2. Forum
  3. Best Practices
  4. Expert Tips
  5. Resources
  6. Print
 

Definition First-mover Advantage. Description.


First Mover AdvantageFirst-mover Advantage is the competitive edge gained by the first significant company to introduce a product or service in a market by having the shortest Time to Market. Although there are certainly benefits associated with being the first or at least the first significant or early in an market, this may or may not actually translate into business success.

Like always, being the first-mover only makes sense if the rewards justify the risks. Some industries reward first-movers with near-monopoly status and high margins. Other industries don't, allowing late-movers the chance to compete more effectively and efficiently against early entrants.


Also it's good to separate operational speed (move quickly) (Operational Agility) from strategic speed (increase the ability to move quickly) (Strategic Agility).


It is important to recognize that first-mover status is not an end in itself, but rather the beginning of a longer and much more complex strategy in which the initial advantage has to be defended against competitors and imitators.


The main drawbacks of trying to be the first mover are:

  • High Costs (technology, R&D, distribution channels, marketing know-how).

  • High Risks. Market and technological uncertainties. Will the judgment that X will be a killer product for market Y be valid?

  • Free Rider Effects. Competitors can study the first mover and copy or cherry pick its strategies, processes, products, employees and/or technologies.


Microsoft OLE DB Provider for ODBC Drivers error '8007000e'

[Microsoft][ODBC Microsoft Access Driver] Not enough space on temporary disk.

/menu_comments.asp, line 140 Failed to execute script: Http Status Code = 500

Microsoft OLE DB Provider for ODBC Drivers error '8007000e'

[Microsoft][ODBC Microsoft Access Driver] Not enough space on temporary disk.

/menu_expert_tips.asp, line 797 Failed to execute script: Http Status Code = 500

Microsoft OLE DB Provider for ODBC Drivers error '8007000e'

[Microsoft][ODBC Microsoft Access Driver] Not enough space on temporary disk.

/menu_resources.asp, line 1249 Failed to execute script: Http Status Code = 500

Compare also: Blue Ocean Strategy  |  Strategic Window  |  Time to Market  |  Competitive Environment  |  Experience Curve Effects  |  Organizational Resilience  |  Entrepreneurial Organization  |  Second-mover Strategy  |  Art of War (Sun Tzu)  |  Sustainable Competitive Advantage

Special Interest Group Leader

You here


 

Return to Management Hub: Marketing  |  Strategy


More on Management  |  Return to Management Dictionary  | 

 

This ends our First-mover Advantage summary and forum.

About 12manage | Advertising | Link to us | Privacy | Terms of Service
Copyright 2017 12manage - The Executive Fast Track. V14.1 - Last updated: 26-3-2017. All names tm by their owners.

Microsoft OLE DB Provider for ODBC Drivers error '8007000e'

[Microsoft][ODBC Microsoft Access Driver] Not enough space on temporary disk.

/menu_expert_tips.asp, line 797 Failed to execute script: Http Status Code = 500

Microsoft OLE DB Provider for ODBC Drivers error '8007000e'

[Microsoft][ODBC Microsoft Access Driver] Not enough space on temporary disk.

/menu_resources.asp, line 1249 Failed to execute script: Http Status Code = 500