To be First Mover in a business, you do not have to have market analysis.
Do you agree or disagree to the statement?
I disagree to this statement, instead to be the first mover you have to have strong market
analysis.
By this way, you will be able to know your overall strength and weakness of your business;
You have to know that your quality products are best among competitors.
You have to know that your pricing strategy is winning against competitor’s pricing strategy.
Your business place located as best place as possible.
Your promotion lead to sales and brand recognition.
In addition to the market analysis to gain the first mover, you have to do sustain market
analysis in order to survive the market, by doing the following efforts:
The first is by creating a technological edge over competitors. By starting earliest, first
movers have more time than later entrants to accumulate and master technical knowledge.
The second way is by preempting later arrivals’ access to scarce assets—for example, a
location on a city’s main street, talented employees, or key suppliers.
The third is by building an early base of customers who would find it inconvenient or costly
to switch to the offerings of later entrants.
1. What are the advantages of becoming First Movers in business?
Being the first to develop and market a product comes with many prime advantages that
strengthen a company's position in the marketplace. For example, a first mover often gains
exclusive agreements with suppliers, sets industry standards, and develops strong
relationships with retailers. Other advantages include
• Brand name recognition is the main first-mover advantage. Not only does it engender
loyalty among existing customers, but it also draws new customers to a company's product,
even after other companies have entered the market. Brand name recognition also positions
companies to diversify offerings and services. Examples of dominant brand name recognition
of a first mover include soft drink colossus Coca-Cola (NYSE: KO), auto-additive giant STP
(NYSE: ENR), and boxed-cereal titan Kellogg (NYSE: K).
• Economies of scale, particularly those regarding manufacturing or technology-based
products, is a massive advantage for first movers. The first mover in an industry has a longer
learning curve, which frequently enables it to establish a more cost-efficient means of
producing or delivering a product before it competes with other businesses.
• Switching costs let a first mover build a strong business foundation. Once a customer
has purchased the first mover's product, switching to a rival product may be cost prohibitive.
For example, a company using the Windows operating system likely would not change to
another operating system, because of the costs associated with retraining employees, among
other costs.
2. What are the challenges of becoming First Movers?
Despite the many advantages associated with being a first mover, there are also challenges.
Other businesses can copy and improve upon a first mover's products, thereby capturing the
first mover's share of the market.
Also, often in the race to be the first to market, a company may forsake key product features
to expedite production. If the market responds unfavorably, then later entrants could
capitalize on the first mover's
3. What does a First Mover do in order to survive the market?
First-mover have to concentrate on how firms achieve them.
The first is by creating a technological edge over competitors. By starting earliest, first
movers have more time than later entrants to accumulate and master technical knowledge.
The second way is by preempting later arrivals’ access to scarce assets—for example, a
location on a city’s main street, talented employees, or key suppliers.
The third is by building an early base of customers who would find it inconvenient or costly
to switch to the offerings of later entrants.
Sumber:
- Materi Sesi 3 Mata Kuliah Bahasa Inggris Niaga
- First Mover Advantage: https://www.youtube.com/watch?v=eDaQcv9mjTI
- First Mover Definition: https://www.investopedia.com/terms/f/firstmover.asp
- The Half-Truth of First-Mover Advantage: https://hbr.org/2005/04/the-half-truth-of-first-
mover-advantage
