During the pre-bubble days, companies that released a product first received big money from investors and big valuations by Wall Street. After the bubble burst, and first movers such as eToys struggled to fight off latecomers, starting first just isn’t what it used to be. There are still first mover advantages, such as the chance to gain early market share, but without the right customers and constant innovation, it’s always possible to be dethroned. So, if you’re the first in your market, here are some articles on how to protect your lead. And if you’re not first, read why the first mover advantage isn’t as important as we once believed.

  • First-Mover Advantage - Discusses why being a first mover doesn’t matter as much as previously believed, and how “a number of first-movers put more effort into marketing their innovations than in making sure their businesses actually worked”.

  • Is There a First Mover Advantage - Seth Godin believes being first can have an advantage if they are the first to target micromarkets, where “attention matters”.

  • The Problem With Being First - “Rather than having a so-called “first-mover advantage”, start-ups that offer new products or operate in new markets often run into difficulties resulting from unknowns about the market and the costs associated with creating market awareness. Additionally, customers don’t give as much credence to the company that was first as they do to the company that has the right product or service. If your company is a first mover, remember that being first is not a sustainable advantage and you will encounter many challenges in developing a viable business.”

  • Being First Into A Market Brings Rewards But Also Risks - “No advantage lasts forever, and the wise business knows that it is much harder to keep an advantage than it is to get it in the first place. First-mover status must never be a strategy in and of itself, only the prelude to a larger and longer strategic plan.”.

  • NSF Survey - The results of a survey conducted at 1100 companies on the importance of being first to market with new products.

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Chris Campbell

First Mover Advantage by Chris Campbell

This entry was posted 4 years ago and was filed under Notebooks.
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· 1 Comment! ·

  1. Innovation Zen · 4 years ago

    Sometime ago I wrote about it over my blog, you can check it out at:

    First Mover Advantage Revisited