First mover advantage can be identified as benefits for the organizations to enter into the market with the significant benefit of a new product. The competition is poor due to which organizations gain an extensive market share. It helps the firms promote a strong brand image, including greater consumer loyalty and lack of competitors in the market. Initially, the first movers focus on a capitalization strategy to gain a larger market share, but they emphasize loyal consumers with the established market share. It promotes the organizations to work effectively organizations with the support of loyal consumers and quality products.
Late movers can provide significant advantages to the firms through their capability of producing the perfect product that is required in the market. The organizations can also utilize demographic surveys to evaluate the needs of the consumers and enhance the quality of the products accordingly that can maximize the sale. Late mover advantage is based on utilizing the knowledge regarding reducing manufacturing costs of the product for maximum organization benefits. Thus, it can also focus on developing a suitable product or service that can target maximum consumers and work as an appealing factor. It can allow the firms to learn from the mistakes and decisions of other firms. Through effective research and understanding of the market, the organizations can easily judge the consumersâ€™ taste to enter the market with a greater benefit.
The first-mover advantage is primarily based on three major factors:
Control of resources: One of the major first-mover advantages is based on the capability of the firm to control the resources of the organization. It promotes a greater quality for the organization to enhance its ability with the first entry into the market. Considering the research and supply chain, the first-mover firm can easily evaluate the needs and desires of the target population and focus on the products to produce them according to the consumerâ€™s needs. It mostly focuses on firm’s opportunity to discourage the entry of other organizations with unique innovation.
Technology leadership: Majorly, the first-mover firms focus on the new technology and products innovation. It works as a technology leader for the firm by providing a unique breakthrough based on research and development. It is specifically for sustainable cost advantage that helps in maintaining a sustained business.
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