first mover advantage - Hutchinson encyclopedia article about first mover advantage

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first mover advantage

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first mover advantage

Competitive advantage conferred on those companies who operate first in a particular market. This may be true in industries which have an economy of scale. The Internet and electronic commerce are seen as areas where first mover advantage may be significant. The benefits of being a first mover in this case are largely associated with capturing a substantial user base and gaining public recognition earlier than the competition.

The idea of first mover advantage has its opponents and there are many examples where the first company into a market did not end up as the dominant player in that market. This includes many Internet pureplays that have lost out to clicks and mortar companies.

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