First Mover Advantages Get there first with the most men. Gen. Nathan Bedford Forrest - PowerPoint PPT Presentation

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First Mover Advantages Get there first with the most men. Gen. Nathan Bedford Forrest

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Create the standards & rules be the brand name ... Physical resources like raw materials, or. First to capture the prime market territory or ... – PowerPoint PPT presentation

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Title: First Mover Advantages Get there first with the most men. Gen. Nathan Bedford Forrest


1
First Mover AdvantagesGet there first with the
most men.Gen. Nathan Bedford Forrest
The first real company to enter a market can
erect significant barriers to prevent
competitors from entering after them. This
allows the first mover to charge higher prices
and make above average profits.but Above
average profits attract other competitors who
will Strive to overcome the barriers that have
been erected.
2
First Mover Advantage Technology, Innovation,
and Timing
  • To Be or Not to BE..the First Mover

3
First Mover Advantages arise from
  • technological leadership
  • preemption of assets
  • buyer switching costs and buyer uncertainty

4
Technological leadership
  • Learning curve- special team know how,
  • RD, patents or trade secrets
  • Imitators can still work around patents

5
A First Mover can gain a Large Market Share
quicklywhich allows them to be Strong Competitors
  • Define the standards for the product
  • Can easily influence perceptions in the market
  • Will defend their market share and have resources
    to do it. ---plan on this!
  • Contrived Deterrence investments made
    specifically to keep new entrants out as a
    warning to new entrants that trying to enter will
    start a war

6
Preemption of Assets
  • Having monopoly control of
  • Key people, or
  • Resources like information, or
  • Physical resources like raw materials, or
  • First to capture the prime market territory or
  • First to capture the best distributors

7
Switching Costs designed into the business
model of the first mover
  • previous investments by customer make it costly
    to switch to a new product even if it is
    incrementally better. This can work for or
    against you..
  • Customers lose time, money to switch
  • Example Bloombergs financial information
    services

8
Buyer choices under uncertainty
  • Customer stick with what they know they have to
    adapt and learn about a new product which they
    wont do without significant incentive
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