Definition of First mover:
An individual or company that enters a new market usually gives itself an advantage over the competition because the first step will soon be profitable.
Order of arrival is closely related to the benefit of order arrival. This is an advantage for a company that is launching a new product or entering a new market. The first players benefit from not sharing the winnings until other competitors enter the market.
Speaking first is not always helpful. Pioneers often cost more than they sell. Those who follow them will have the benefit of learning from the mistakes of the consumers first and entering the market financially. An important example in this situation is e-Twice, the first Internet retailer. The company went bankrupt in 2001 and was closed down by Toy RU.
Netscape used the first step for a while. Netscape was the first to offer an Internet browser. However, in 1997, Microsoft entered the market with Internet Explorer and became the market leader. However, by the time Microsoft entered the market, Netscape had made significant profits.
Patent protection is a surefire way for pioneers to make and maintain profits. Many pharmaceutical companies are the first to develop new drugs for the first time to maintain profits until generic drugs come on the market, but only after patents come first, first served.
Many other early participants gained brand loyalty so that they could maintain their pioneering advantage over the years. Coca-Cola, for example, was the first company to enter the soft drinks market and, in the past, has managed to gain significant market share in the soft drinks industry.
According to the Harvard Business Review, the benefits of first acting depend on two factors: the pace at which technology is evolving and the pace at which the market is evolving. Rapid changes in technology, such as software, will make it just as difficult for competitors to gain significant market share.
The same goes for market growth. For example, cell phones have not entered the mainstream market for at least 50 years. People don't have phones. However, the mobile communications market has grown rapidly in just two decades, with the market growing by 70%. This opens up market opportunities for many competitors.
How to use First mover in a sentence?
- John hopes to market his product first, so that he can go ahead and win over all his future competitors.
- EBay was the first to offer an online auction service.
- Coca-Cola has enjoyed the benefits of being a pioneer in the soft drink industry for over a hundred years.
Meaning of First mover & First mover Definition