1.) What are some of the advantages of entering a market early? Are there any advantages to entering a market late?
In the game that is the Market, first movers and early followers often have higher returns and survival rates, giving them a high advantage. If a company is a first mover with a new technology, it can allow them to earn a brand loyalty and technology leadership. Entering a market early means being able to capture scares resources, gain access to distribution channels, and build relationships with suppliers. The only possible advantage of entering the market late would be to pick up the pieces of an early entry failure. This way there is a chance the late entrants outperform them.
2.) Can you think of an example of a successful a) first mover, b) early follower, and c) late entrant? Can you think of unsuccessful examples of each?
First Mover – Xerox copiers, still the standard.
Early Follower – Sony’s Blu-Ray discs, large memory, phenomenal picture.
Late Entrant – Vizio Flat screen TV’s affordable, good quality.
First Mover – Kodak copiers, an unmitigated failure, ask my dad, he made them!! Early Follower – Toshiba’s HD DVD’s, never stood a chance. Late Entrant – Misubishi HD TV’s, poor quality, even for the price.
3.) What factors might make some industries harder to pioneer than others? Are there industries in which there is no penalty for late entry?
When you have industries that utilize a great deal of technology, and natural resources it is harder to pioneer in those industries unless you can come up with an alternate way of competing. As these new innovations of technology can take a long time to create, and time to adapt to as well, by the time
they are adapted it could be obsolete. In some cases, a new version comes too quickly and requires them to adapt sooner than they’d like. Often though, technology innovators are expected to come with new, faster and even better version of the old and even totally new products. In these instances, being a first mover is the best way to go. People shouldn’t try stopping to be better, but depending on what it is, the success can be low.