The Advantages & Disadvantages of First-Mover Strategies

Save
Next Video:
What Is a Comparable in an Appraisal?....5

As with most business tactics, first-mover strategy has its own set of advantages and disadvantages to consider. Find out about the advantages and disadvantages of first-mover strategy with help from a business consultant in this free video clip.

Part of the Video Series: Finance & Business Advice
Promoted By Zergnet

Comments

Video Transcript

Hi, my name is Alexis Guerreros. I'm a business consultant. Today, I'm going to talk to you a little bit about the first mover strategy. Now there are some pros and cons to being the first mover. Really what that means is the first one to do something. The first one to be involved in a specific market, maybe come out with a new technology, or just create something. Now being the first gives you a lot of advantages. One, all the users are going to come to you. Two, you're going to have all the technological advantage. Basically meaning well you created the product, so if there's any type of technology that you've created to create that product or that you need, you're going to be able to attain all of that first. And one obviously, you're going to have the advantage of experience. So you're going to learn along the way. The problem with it could be others are learning the same time you're learning. So any mistakes you might have made along the way, the person who comes in second or next, isn't going to have to make those mistakes. They already understand what the users are looking for, they understand what exactly it is you do and what advantages they may have over you, and also they're going to know exactly where to go to get exactly what you're doing. So all the mistakes you've made along the way, they've watched. The big problem that comes in for not being the first mover or the second mover, is going to be the users. There's going to be a specific type of cost involved to get users to switch from them to you or vice versa. Something to keep in mind when you're considering whether you want to enter the market first, or really adapt to something that's already been done. Good luck out there in that market, though.

Featured

Related Searches

M
Is DIY in your DNA? Become part of our maker community.
Submit Your Work!