First Mover
Candlefocus EditorThe most significant advantage of becoming a first mover is the ability to establish strong brand recognition. By introducing a product or service ahead of the competition, organizations can quickly establish a foothold in the market, making it more difficult for others to enter. Additionally, the first mover has greater opportunity to capture customer allegiance. Consumers looking for a new product or service are likely to consider a first-mover’s offering before that of a competitor, creating an advantage and often superior market share.
In addition to initial brand recognition, first movers can use their early lead in the market to develop efficiencies in production costs and delivery. This allows them to produce their goods and services in cost-effective ways and to even introduce further iterations of existing products when customer demands change.
Despite their advantages, first movers also face certain risks. Their products and services may be copied or improved upon by competitors, which can undermine their competitive advantage. Others may also be better equipped to respond to sales opportunities due to the first mover’s lack of established infrastructure. Successful first movers must, therefore, be agile and strategic in order to remain competitive.
Amazon and eBay are two of the most notable first movers in the e-commerce space. Both companies quickly seized the opportunity of leveraging the internet for retail purchases, and today are two of the largest and most established players in their industry.
In a world that is quickly moving to digital, first movers are becoming ever more important for driving growth and seizing customer opportunities presented in emergent markets or customer demands. Organizations that are able to recognize and swiftly act on early foresight have the potential to gain significant advantage, provided they have the required infrastructure in place to make the most of their advantage.