First-Mover Advantage

Question 1

First movers

Answer 1

The first to enter the market for a specific product or service are commonly believed to accrue long-term competitive advantages, though the advantages are more complex than order of entry effect

Question 2

How to become first mover

Answer 2

1. Produce a new product.
2. Use a new process.
3. Enter a new market..

Question 3

First-mover advantage

Answer 3

1. Economic factors: relate to cost advantages in the form of scale and experience economies and marketing cost asymmetries.
2. Pre-emption factors: provide the basis for a first mover to achieve absolute cost advantage (contracts with suppliers at lower prices/ geographic space/ marketing
   channels).
3. Technological factors: relate to product, process, and organizational innovations that product a cost and/ or differentiation advantage.
4. Behavioural factors: constitute of opportunities to achieve a differentiation advantage for the first mover or for the differentiation advantage to be endowed on the first
   mover by the marketplace