The First Mover

In: Business and Management

Submitted By ktholm
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THE FIRST MOVER
Kelly Holm
American InterContinental University
Professor Bennett
MGT 680 -1303D-01

Abstract
The first mover theory implies that the first organization to enter the market has the upper hand in that market. There are advantages and also disadvantages to any theory. We will discuss in this paper some advantages as well as disadvantages of this theory.

The First Mover Theory The First Mover Theory implies that the first company to enter a new market gains them superior brand recognition as well as customer loyalty. This is a form of competitive advantage for organizations to gain. There are however, pros and cons to being the first mover and the late mover. Late Mover Advantages
Entering the market as a late mover gives the organization the opportunity to step into a market that has already been tested. It has been established and researched by the first mover. Consumers are familiar with the product and the marketing and developing has also been tested to determine the demand and response in the market. The uncertainty is removed from the market by the first mover.
There is low risk for the later mover in predicting and how to adept to the market changes. For example, they have the ability to see what methods work without putting up risky investment capital and making bad business decisions. Essentially they have a lower risk in investment.
Late movers have the opportunity to piggyback onto the first mover’s investment and improve on the product to quickly get it back into the market improved. They imitate the strategy of the first mover for a better product.
Technology is also another advantage of coming in the market late. Today’s techonology is moving and changing rapidly and so it the market. According to Dr. Stuart Roper this is yet another advantage of the late comer (Bainbridge, 2013).
Late Mover Disadvantages
Market…...

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