First-mover advantage - Wikipedia

In marketing strategy, first-mover advantage (FMA) is the competitive advantage gained by the initial ("first-moving") significant occupant of a market ... First-moveradvantage FromWikipedia,thefreeencyclopedia Jumptonavigation Jumptosearch Businessadvantage Forthechessconcept,seeFirst-moveadvantageinchess. Ithasbeensuggestedthatpartsofthispagebemovedintoanotherarticle.Relevantdiscussionmaybefoundonthetalkpage.(July2021) Thisarticlehasmultipleissues.Pleasehelpimproveitordiscusstheseissuesonthetalkpage.(Learnhowandwhentoremovethesetemplatemessages) Thisarticlepossiblycontainsoriginalresearch.Pleaseimproveitbyverifyingtheclaimsmadeandaddinginlinecitations.Statementsconsistingonlyoforiginalresearchshouldberemoved.(February2014)(Learnhowandwhentoremovethistemplatemessage) Thisarticleneedsadditionalcitationsforverification.Pleasehelpimprovethisarticlebyaddingcitationstoreliablesources.Unsourcedmaterialmaybechallengedandremoved.Findsources: "First-moveradvantage" – news ·newspapers ·books ·scholar ·JSTOR(February2015)(Learnhowandwhentoremovethistemplatemessage) (Learnhowandwhentoremovethistemplatemessage) Inmarketingstrategy,first-moveradvantage(FMA)isthecompetitiveadvantagegainedbytheinitial("first-moving")significantoccupantofamarketsegment.First-moveradvantageenablesacompanyorfirmtoestablishstrongbrandrecognition,customerloyalty,andearlypurchaseofresourcesbeforeothercompetitorsenterthemarketsegment. Firstmoversinaspecificindustryarealmostalwaysfollowedbycompetitorsthatattempttocapitaliseonthefirstmovers'success.Thesefollowersarealsoaimingtogainmarketshare;however,mostofthetimethefirst-moverswillalreadyhaveanestablishedmarketshare,withaloyalcustomerbasethatallowsthemtomaintaintheirmarketshare.[1] Contents 1Mechanismsleadingtofirst-moveradvantages 1.1Technologyleadership 1.2Controlofresources 1.3Buyerswitchingcosts 2Disadvantagesofbeingafirstmover 2.1Free-ridereffects 2.2Resolutionoftechnologicalormarketuncertainty 2.3Shiftsintechnologyorcustomerneeds 2.4Up-frontinvestmentcosts 2.4.1Magnitudeanddurationoffirst-moveradvantages 2.5Incumbentinertia 3Generalconceptualissues 3.1Endogeneityandexogeneityoffirst-moveropportunities 3.2Definitionalandmeasurementissues 3.2.1Whatconstitutesafirst-mover? 3.2.2Alternativemeasuresoffirst-moveradvantage:profitsvs.marketsharevs.probabilityofsurvival 3.2.3Magnitudeanddurationoffirst-moveradvantages 4Second-moveradvantage 4.1Exampleofsecond-moveradvantage:Amazon.com 5Implicationsformanagers 6Issuesforfutureresearch 6.1TheoreticalandconceptualIssues 6.2Empiricalissues 7Seealso 8References 9Furtherreading Mechanismsleadingtofirst-moveradvantages[edit] Thethreeprimarysourcesofafirst-moveradvantagearetechnologyleadership,controlofresources,andbuyerswitchingcosts.[2] Technologyleadership[edit] Firstmoverscanmaketheirtechnology/product/servicesharderforlaterentrantstoreplicate.Forexample,ifthefirstmoverreducesthecostsofproducingaproduct,thentheywillestablishanabsolutecostadvantage,notjustamarginalcostadvantage.Notonlythis,butthefirstmoverwillbeabletoapplyforpatents,copyrights,andanyotherprotectiveadvantagesthatwillfurtherenhancetheirestablishmentinthemarket.[2] Anotherwaytechnologyleadershipcomesintoplayiswhenafirmhashadauniquebreakthroughinitsresearchanddevelopment(R&D),providingsustainablecostadvantageiftheinnovativeideacanbesustainedandprotected.Itmustbetakenintoconsiderationthattechnologicalchangesarehappeningatanincrediblyrapidpace.Therefore,patentsareaweakprotectionasthetransitoryvalueislow.Withtheshortlifetimeofanytechnologicaladvantage,patent-racescanactuallyprovetobethedownfallofaslowermovingfirst-moverfirm. Controlofresources[edit] Thesecondtypeoffirst-moverbenefitistheabilitytocontrolresourcesnecessaryforthebusinessthatareofahigherqualitythanresourceslaterentrantswillbeabletouse.Anexamplewouldbetheadvantageofbeingthefirstcompanytoopenanewtypeofrestaurantintownandbeingabletoobtainaprimelocation.ThisstrategywasusedbyWalmartwhentheywerethefirsttolocatediscountstoresinsmalltowns.Thefirstentrantcouldalsocontrolthesupplyofrawmaterialsneededtomakeaproduct,aswellasobtainingtheidealsupplychain.First-moverfirmsalsohavetheopportunitytobuildresourcesthatmaydiscourageentrybyothercompanies.Anexampleofthisisincreasingproductioncapacitytobroadenproductlines,thereforedeterringfollowingfirmstoenterandsuccessfullymakeprofits.ThisstrategyisoftenusedbyInditexwiththeirfashionretailsupply.[3]Wheneconomiesofscalearelarge,first-moveradvantagesaretypicallyenhanced.Theenlargedcapacityoftheincumbentservesasacommitmenttomaintaingreateroutputfollowingentry,withthethreatofpricecutsagainstlateentrants.[4] Buyerswitchingcosts[edit] Thefinaltypeofbenefitthatfirstmoversmayenjoycomesfrombuyer-switchingcosts.Ifitiscostlyorinconvenientforacustomertoswitchtoanewbrand,thefirstcompanytogainthecustomerwillhaveanadvantage.Buyerswillrationallystickwiththefirstbrandtheyencounterthatperformsthejobadequately.Especiallyforconsumerproducts,thefirstmoverhastheopportunitytoshapeconsumerpreferencesandtoearncustomerloyalty.Satisfiedconsumerstendnottospendtimeseekinginformationaboutotherproducts,andtendtoavoidtheriskofbeingdissatisfiediftheyswitch.SomeexamplesofpioneeringbrandsinproductcategoriesincludeCoca-Colasoftdrinks,Kleenextissues,andNestléfoods.Thesebrandsareknowntooftendominatetheirmarketsforalongtime.Thesebrandpreferencesappeartobemoreimportantforretailpurchasesbyconsumersthanforproductspurchasedbybusinesses,asbusinessesbuyproductsinlargervolumeandhavemoreincentivetosearchforlower-costoptionsthatwillcontributetoaneconomyofscale.[3][5] Disadvantagesofbeingafirstmover[edit] Althoughbeingafirst-movercancreateanoverwhelmingadvantage,insomecasesproductsthatarefirsttomarketdonotsucceed.Theseproductsarevictimsoffirst-moverdisadvantages.Thesedisadvantagesinclude: "[4] Free-ridereffects[edit] Secondaryorlate-moverstoanindustryormarkethavetheopportunitytostudyfirst-moversandtheirtechniquesandstrategies."Latemoversmaybeableto'free-ride'onapioneeringfirmsinvestmentsinanumberofareasincludingR&D,buyereducation,andinfrastructuredevelopment."[4]Thebasicprincipleofthiseffectisthatthecompetitionisallowedtobenefitandnotincurthecostswhichthefirst-moverhastosustain.These"imitationcosts"aremuchlowerthanthe"innovationcosts"thefirst-moverhadtoincur,andcanalsocutintotheprofitsthepioneeringfirmwouldotherwiseenjoy. Studiesoffree-ridereffectssaythebiggestbenefitisridingthecoattailsofacompany'sresearchanddevelopment,[6]andlearning-basedproductivityimprovement.[7]Otherstudies[8]havelookedatfreeridereffectsinrelationtolaborcosts,asfirst-moversmayhavetohireandtrainpersonneltosucceed,onlytohavethecompetitionhirethemaway.[4]Forexample,Craigslistwasthefirstandbiggestwebsitetolookforshort-termrentals.AirBnBcameinafewyearsafterandbuiltamassivebusinessattheexpenseofCraigslist.[9] Resolutionoftechnologicalormarketuncertainty[edit] First-moversmustdealwiththeentireriskassociatedwithdevelopinganewtechnologyandcreatinganewmarketforit.Late-movershavetheadvantageofnotsustainingthoseriskstothesameextent.Whilefirst-movershavenothingtodrawuponwhendecidingpotentialrevenuesandfirmsizes,late-moversareabletofollowindustrystandardsandadjustaccordingly.[4]Thefirst-movermusttakeonalltheriskasthesestandardsareset,andinsomecasestheydonotlastlongenoughtooperateunderthenewstandards. Shiftsintechnologyorcustomerneeds[edit] "Newentrantsexploittechnologicaldiscontinuitiestodisplaceexistingincumbents."[4]Lateentrantsaresometimesabletoassessamarketneedthatwillcauseaninitialproducttobeseenasinferior.Thiscanoccurwhenthefirst-moverdoesnotadaptorseethechangeincustomerneeds,orwhenacompetitordevelopsabetter,moreefficient,andsometimesless-expensiveproduct.Oftenthisnewtechnologyisintroducedwhiletheoldertechnologyisstillgrowing,andthenewtechnologymaynotbeseenasanimmediatethreat.[4] Anexampleofthisisthesteamlocomotiveindustrynotrespondingtotheinventionandcommercializationofdieselfuel(CooperandSchendel,1976).Thisdisadvantageiscloselyrelatedtoincumbentinertia,andoccursifthefirmisunabletorecognizeachangeinthemarket,orifaground-breakingtechnologyisintroduced.Ineithercase,thefirst-moversareatadisadvantageinthatalthoughtheycreatedthemarket,theyhavetosustainit,andcanmissopportunitiestoadvancewhiletryingtopreservewhattheyalreadyhave. Up-frontinvestmentcosts[edit] NewproductsandserviceswhichrequiresignificantR&Dordevelopmentwillalsorequiresignificantinvestments.Therefore,thefirmswillneedtohavethefundsavailabletobeabletodealwiththeup-frontinvestments.Iftheydon'thavethecashonhand,thiscouldleadtohighloansanddebtswhichputsincreasedpressureontheproductstodowell.[9] Magnitudeanddurationoffirst-moveradvantages[edit] Thoughthename"first-moveradvantage"hintsthatpioneeringfirmswillremainmoreprofitablethantheircompetitors,thisisnotalwaysthecase.Certainlyapioneeringfirmwillreapthebenefitsofearlyprofits,butsometimesprofitsfallclosetozeroasapatentexpires.Thiscommonlyleadstothesaleofthepatent,orexitfromthemarket,whichshowsthatthefirst-moverisnotguaranteedlongevity.Thiscommonlyacceptedfacthasledtotheconceptknownas"second-moveradvantage". Incumbentinertia[edit] Whilefirmsenjoythesuccessofbeingthefirstentrantintothemarket,theycanalsobecomecomplacentandnotfullycapitalizeontheiropportunity.AccordingtoLiebermanandMontgomery: Vulnerabilityofthefirst-moverisoftenenhancedby'incumbentinertia'.Suchinertiacanhaveseveralrootcauses: thefirmmaybelockedintoaspecificsetoffixedassets, thefirmmaybereluctanttocannibalizeexistingproductlines,or thefirmmaybecomeorganizationallyinflexible.[4] Firmsthathaveheavilyinvestedinfixedassetscannotreadilyadjusttothenewchallengesofthemarket,astheyhavelessfinancialabilitytochange.Firmsthatsimplydonotwishtochangetheirstrategyorproductsandincursunkcostsfrom"cannibalizing"orchangingthecoreoftheirbusiness,fallvictimtothisinertia.[4]Suchfirmsarelesslikelytobeabletooperateinachangingandcompetitiveenvironment.Theymaypourtoomuchoftheirassetsintowhatworksinthebeginning,andnotprojectwhatwillbeneededlongterm. Somestudieswhichinvestigatedwhyincumbentorganizationsareunabletobesustainedinthefaceofnewchallengesandtechnology,pinpointedotheraspectsofincumbents'failures.Theseincluded:"thedevelopmentoforganizationalroutinesandstandards,internalpoliticaldynamics,andthedevelopmentofstableexchangerelationswithotherorganizations"(HannanandFreeman,1984). Allinall,somefirmsaretoorigidandinvestedinthe"now",andareunabletoprojectthefuturetocontinuetomaximizetheircurrentmarketstronghold. Generalconceptualissues[edit] Endogeneityandexogeneityoffirst-moveropportunities[edit] First-moveradvantagesaretypicallytheresultoftwothings:technicalproficiency(endogeneic)andluck(exogeneic). Skillandtechnicalproficiencycanhaveaclearimpactonprofitsandthesuccessofanewproduct;abetterproductwillsimplysellfaster.Aninnovativeproductthatisthefirstofitskindhasthepotentialtogrowenormously.Technicallycompetentcompaniesareabletomanufacturetheirproductsbetter,atalowercostthantheircompetitors,andhavebettermarketingproficiency.Anexampleoftechnicalproficiencyaidingfirst-moveradvantageisProcterandGamble'sfirstdisposablebabydiaper.Theabilitytogetaheadofthemarketthroughtechnicalbreakthroughs,theuseofmaterialsthatwerelowincost,aswellastheirgeneralmanufacturingproficiencyanddistributionchannels,allowedP&Gtodominatethedisposablediaperindustry. Luckcanalsohavealargeeffectonprofitsinfirst-mover-advantagesituations,specificallyintermsoftimingandcreativity.Simpleexamplessuchasaresearch"mistake"turningintoanincrediblysuccessfulproduct(serendipity),orafactorywarehousebeingburnedtotheground(unlucky),canhaveanenormousimpactinsomeinstances.Initially,ProcterandGamble'sleadwasaidedbyitsabilitytomaintainaproprietarylearningcurveinmanufacturing,andbybeingthefirsttotakeovershelfspaceinstores.Largeincreasesinthebirthrate,intheyearsthatProcterandGamble'sfirstdisposablediaperswerereleased,alsoaddedtotheirindustryprofitsandfirst-moveradvantage. Definitionalandmeasurementissues[edit] Whatconstitutesafirst-mover?[edit] Muchoftheproblemwiththeconceptoffirst-moveradvantageisthatitmaybehardtodefine.Shouldafirstmoveradvantageapplytofirmsenteringanexistingmarketwithtechnologicaldiscontinuity,thecalculatorreplacingtheslideruleforexample,orshoulditapplysolelybenewproducts?Theimprecisionofthedefinitionhascertainlynamedundeservingfirmsaspioneersincertainindustries,[citationneeded]whichhasledtosomedebateovertherealconceptoffirst-moveradvantage. Anothercommonargumentiswhetherfirst-moveradvantageconstitutestheinitiationofresearchanddevelopmentversustheentryofanewproductintothemarket.Typicallythedefinitionisthelatter,sinceplentyoffirmsspendmillionsinresearchanddevelopmentthatneverresultinaproductenteringamarket.Manyfactorsaffecttheanswertothesequestions;includingthesequenceofentry;elapsedtimesincethepioneer'sfirstrelease;andcategorizationssuchasearlyfollower,latefollower,differentiatedfollower,etc. Alternativemeasuresoffirst-moveradvantage:profitsvs.marketsharevs.probabilityofsurvival[edit] Acommonlyacceptedwayofmeasuringafirst-moveradvantagebypioneeringfirm'sprofitsastheconsequenceofitsearlyentry.Suchprofitsisanappropriatemeasure,sincethesoleobjectiveofstockholdersistomaximizethevalueoftheirinvestment. Still,someissueshaverisenwiththisdefinition,specificallythatdis-aggregateprofitdataareseldomobtainable.[10]Inturn,marketsharesandratesofcompanysurvivalaretypicallyusedasalternativemeasuressincebotharecommonlylinkedtoprofits.Stilltheselinkscanbeweakandleadtoambiguity.Earlyentrantsalwayshaveanaturaladvantageinmarketshare,whichdoesnotalwaystranslatetohigherprofits. Magnitudeanddurationoffirst-moveradvantages[edit] Thoughthename"first-moveradvantage"hintsthatpioneeringfirmswillremainmoreprofitablethantheircompetitors,thisisnotalwaysthecase.Certainlyapioneeringfirmwillreapthebenefitsofearlyprofits,butsometimesprofitsfallclosetozeroasapatentexpires.Thiscommonlyleadstothesaleofthepatent,orexitfromthemarket,whichshowsthatthefirst-moverisnotguaranteedlongevity.Thiscommonlyacceptedfacthasledtotheconceptknownas"second-moveradvantage". Second-moveradvantage[edit] Thissectionneedsadditionalcitationsforverification.Pleasehelpimprovethisarticlebyaddingcitationstoreliablesources.Unsourcedmaterialmaybechallengedandremoved.(November2011)(Learnhowandwhentoremovethistemplatemessage) First-moversarenotalwaysabletobenefitfrombeingfirst.Whereasfirmswhoarethefirsttoenterthemarketwithanewproductcangainsubstantialmarketshareduetolackofcompetition,sometimestheireffortsfail.Second-moveradvantageoccurswhenafirmfollowingtheleadofthefirst-moverisactuallyabletocapturegreatermarketshare,despitehavingenteredlate.[11] First-moverfirmsoftenfacehighresearchanddevelopmentcosts,andthemarketingcostsnecessarytoeducatethepublicaboutanewtypeofproduct.[12]Asecond-moverfirmcanlearnfromtheexperiencesofthefirstmoverfirm,[11]andwillspendlessonR&D,spendlessonmarketeducation,dealwithlessriskoffailuretogainproductacceptanceandspendlessoncustomeracquisition.[13]Asaresult,thesecond-movercanuseitsresourcestofocusonmakingasuperiorproductorout-marketingthefirst-mover. Thefollowingareafewexamplesoffirst-moverswhosemarketsharewassubsequentlyerodedbysecond-movers: Atarivs.Nintendo; Apple'sNewtonPDAvs.PalmPilotPDA; CharlesStackOnlineBookstorevs.Amazon.com;althoughthepublicwaslargelyunawareofCharlesStackOnlineBookstoreandacompellingargumentcanbemadethatAmazonhashadmuchmoresuccessthanthesecond-moverBarnesandNoble.com Second-moverfirmsaresometimescalled"fastfollowers". Obviously,everymarketisdifferent.Thus,whilesomemarketsmayhighlyrewardfirst-movers,othersmaynot. Exampleofsecond-moveradvantage:Amazon.com[edit] In1994,JeffBezosfoundedAmazon.comasanonlinebookstore,andlaunchedthesitein1995.TheproductlineswerequicklyexpandedtoVHS,DVD,CDs,computersoftware,videogames,furniture,toys,andmanyotheritems. Whatmanypeopledon'tknowisthatBookStacksUnlimited,orbooks.com,wasfoundedin1991,andlaunchedonlinein1992.FoundedbyCharlesM.Stack,itisconsideredtobetheveryfirstonlinebookstore,howeverBezosandAmazonwasmuchmoresuccessfulduetothefactthatBezoswasabletounderstandthatwebusagewasincreasing2000%eachyear,andthereforewasabletomarketAmazonaccordingly.Amazonhassincedominatedtheonlinebookstorebusiness,andcontinuestoexpandtootherproductmarketsaswell.BookStacksontheotherhandwassoldtoBarnesandNoblein1996.[14] Implicationsformanagers[edit] Differentstudieshaveproducedvaryingresultswithrespecttowhetherornot,onthewhole,first-moveradvantagesexistandprovideaprofitableresultforpioneers.[citationneeded]Therehavebeentwooutstandingconclusionsthathavebeenaccepted.Thefirstbeingthatonaverage,first-moverstendtoproduceanunprofitableoutcome(BouldingandMoore).Secondly,pioneersthatmanagetosurvivedoenjoylastingadvantagesintheirmarketshare(Robinson).Thus,thepioneerstrategyisnotnecessarilyaroutethatjustanyfirmcantake,butwiththerightresources,andthepropermarketingapproach,itcanresultinlastingprofitsforthecompany. Managerscanmakeabigdifferenceforafirmwhendecidingwhetherornottheyshouldbefollowersorpioneers."Goodgeneralsmaketheirluckbyshapingtheoddsintheirfavor"(MacMillan).Makinggooddecisionsandactinguponthemcanhelpafirm,butintheendthereareotherfactorsthatmustbetakenintoaccountbeforemakingafinaldecision.Oneissueisthatafirmmustfindawaytoatleastlimit,ifnotprevent,imitation,by,forexample,applyingforpatent(s),creatingaproductthatistoocomplicatedtoreverseengineer,ortakingcontrolofresourcesthatareimportanttotheproductionofitsproductandanyimitation.[4]Thefirmmustalsorememberthatfirst-moveradvantagesarenoteverlasting;eventuallythecompetitionwillmanagetotakeatleastsomepieceofthemarket.Finally,acompanymustdoitsbesttopreventincumbentinertiacausedbyself-righteousness,orpossiblechangesinthemarketenvironment.Onewaytoovercomesuchinertiaisbyexpandingtheproductline.Theadvantagesofhavingawiderproductlinearemucheasiertomaintaincomparedtothoseofbeingapioneer(Robinson). Managerswhoopttobefollowershavetopicktherightmethodofattackonthepioneeroftheproduct.Someattempttogohead-to-headagainsttheproduct,hopingthatincreasedspendinginadvertisementisenoughtocounteractthefirst-moveradvantages.Thistechniquehasprovensuccessfulbutusuallyagainstsmallerpioneersthatlackresourcesandrecognitioninthemarket(Urban1986).Otherwise,this"me-too"strategyprovesineffectivesincethefollowerwillmostlikelylackbrandnameandproductawareness.Analternatemethodistocreateanentirelynewmarketsegmentanddistributionchannel,toestablishafootholdintheindustry,andthenemploytheme-toostrategy.[4] Issuesforfutureresearch[edit] Thereareseveralproblemsthatdoarisewhenoneattemptstoclearlydefine"first-moveradvantages".Thesepreventusfromentirelyacceptingthatacompanygainsaclearlydefinedbenefitfrombeingthefirsttoproduceandmarketaparticularproduct.Manystudieshavebeendonethattrytoidentifyallpossible"pioneeringadvantages"thatareavailabletoafirst-mover,buttheresultssofarhaveprovidedonlyabasicframeworkwithoutanyclearlydefinedmechanisms.[4]Thereisstillmuchmoreresearchthatcanbedonetoprovidefuturegenerationsofmarketingteamswithconcreteevidencetoshowthatfirst-moveradvantageiswell-defined. TheoreticalandconceptualIssues[edit] Thebiggestissuethatarisesisthat,despitetheevidenceoffirst-moveradvantages,thefundamentalquestionofhoworwhytheseadvantagesoccurisstillunanswered.Whenattemptingtodiscovertheanswer,itbecameclearthatitwastoodifficulttodifferentiatebetweenanactualadvantageandjustblindluck.[4]Beforethisresearchcanbecompleted,crucialmanagementdecisions,suchastheoptimaltimefortoproduceandmarketaproduct,needtobestudied.Ultimately,somefirmsaremoresuitedtobepioneers,othersaremoresuitedtowaitandseehowtheproductdoesandthenimproveuponit,releasingaslightlymodifiedreproduction. Asofnow,wehaveamuchclearerunderstandingofadvantagesthatfirmswhomovetheirproductmuchlaterhavethanthosethatfirst-moversenjoy.Thebiggestconcerncurrentlyisthatalmostnoefforthasbeenputtowardsdeterminingthe"resolutionoftechnologicalandmarketuncertainty"whicharebothconsideredtobemajordeterminantsintheoptimaltimingofproductrelease.Thereis,also,nomethodologytoestablishwhetherinertiaisorisnotacceptable.[4] Empiricalissues[edit] Determiningthedifferencesbetweentheadvantagesoffollowersandfirst-moversmaybeaconceptualissue,butempiricalissuesrevolvearoundexplicitstrategiesthatfirst-moversemploytoimproveupontheiradvantage.Newinformationisneededtosupportanyacceptabletheoriesrelatingtothemechanisms,advantages,anddisadvantagesthatfirst-moversarethoughttohaveattheirdisposal.[4]Researchersinthisfieldmustavoidusingthesamedatarepeatedly,whichisatrendthathascrippledtheprogressofthisinvestigation. Afuturestudyshouldbetterdelineatethedifferencesbetweenfirst-moveradvantagesandotheradvantagesthatafirmmayhave,suchassuperiormanufacturing,orabettermarketingscheme.Fundingsuchastudywouldbeextremelyusefultoanycompanythathasextramoneytospendfortheirnextquarter.Furthermore,itwouldbeusefultostudyhowthestrengthofeachadvantagevariesasittranslatesfromindustrytoindustry.Itisquitepossiblethateachindustryhasitsownuniquebenefitsthathaveyettobeformallydocumented.Anexampleofonethathas,isthatfirst-moveradvantageshaveproventobemuchmoreprevalentinconsumer-goods,asopposedtoproducer-goodsindustries.[citationneeded]Lastly,betterknowingthelengthoftimethatafirst-moveradvantagelastswouldbevitaltoanycompanytryingtodeterminewhetherornotitshouldtakethechanceofbeingthefirsttomarketaparticulartypeofproduct,andhowlongtheproductwouldbeprofitable. Seealso[edit] Scoop(term) References[edit] ^Investopedia."FirstMoverDefinition".Investopedia. ^abCorporateFinanceInstitute."FirstMoverAdvantage".CFI.Retrieved20October2020. ^abEttington,Deborah."FirstMoverAdvantage".ReferenceforBusiness.Retrieved20October2020. ^abcdefghijklmnoLieberman,MarvinB.;Montgomery,DavidB(Summer1988)."First-MoverAdvantages"(PDF).StrategicManagementJournal.StrategicManagementSociety.9(S1):41–58.doi:10.1002/smj.4250090706. ^Wernerfelt,B.'Brandloyaltyanduserskills',JournalofEconomicBehaviorandOrganization,1985,pp.381–385. ^Spence1984,BaldwinandChilds,1969 ^GhemawatandSpence,1985,Lieberman1987 ^GuaschandWeiss(1980) ^abRosman,Matthijs(13August2020)."First-MoverDisadvantages".Revelx.Retrieved20October2020. ^Anderson,C.R.andF.T.Paine,'PIMS:areexamination',AcademyofManagementReview,3,July1978,pp.602–612. ^abBirger,Jon(2006-03-13)."Second-MoverAdvantage".CNN.Archivedfromtheoriginalon2006-04-27.Retrieved2011-11-23. ^Epstein,Kevin(2006).Marketingmadeeasy.Epstein.pp. 116–117.ISBN 978-1-59918-017-5. ^Lema,Chris."WhatisSecond-MoverAdvantage?EnteringaMarketLate".Retrieved20October2020. ^Klein,Dustin(22July2002)."Visionaryinobscurity:CharlesStack".SmartBusiness.Retrieved20October2020. Furtherreading[edit] Arthur,Brian."CompetingTechnologies,IncreasingReturns,andLock-inbyHistoricalEvents".TheEconomicJournal,99(1988):116-131. Boulding,W.andM.J.Moore,May1987."Pioneeringandprofitability:structuralestimatesfromanonlinearsimultaneousequationsmodelwithendogenouspioneering".ResearchPaper,FuquaSchoolofBusiness,DukeUniversity. Lieberman,M.B.andD.B.Montgomery,"First-Mover(Dis)Advantages:RetrospectiveandLinkwiththeResource-BasedView",StrategicManagementJournal,19:1111-1125(1998) MacMillan,I.C.,1983."Preemptivestrategies",JournalofBusinessStrategy,16-26. Pierson,Paul,"IncreasingReturns,PathDependence,andtheStudyofPolitics"AmericanPoliticalScienceReview,94,2(June2000):251-67. Robinson,W.T.,September1988."Sourcesofmarketpioneeradvantage:thecaseofindustrialgoodsindustries",JournalofMarketingResearch. Sugden,Robert,"SpontaneousOrder"JournalofEconomicPerspectives,v.3no.4(1989). Urban,G.L.,R.Carter,S.GaskinandZ.Mucha,June1986."Marketsharerewardstopioneeringbrands:anempiricalanalysisandstrategicimplications",ManagementScience,645-659. 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