First Mover Last Mover Theories
Not what you're looking for?
Discuss the advantages and the disadvantages of the first mover and the last mover theories. Provide an unbiased comparison of the two theories.
- Identify at least four advantages and four disadvantages for each theory and comprehensively show how each advantage or disadvantage affects the use of that theory (a minimum of 16 pros/cons in all).
- Identify at least four examples of real firms who have been successful and four examples of real firms who have been failures using each theory (a minimum of 16 real firms in all).
- Provide a definitive and unbiased recommendation of which theory to use. You should provide the specific attributes which constitute the most advantageous context in which the chosen theory operates and justify your recommendation with researched support, logic and examples.
Utilize the following format:
Q1 Identify at least four advantages and four disadvantages for each theory and comprehensively show how each advantage or disadvantage affects the use of that theory (a minimum of 16 pros/cons in all).
Q1a1 advantage number 1 using the first-mover theory—list and explain example
Q1a2 advantage number 2 using the first-mover theory—list and explain example
Q1a3 advantage number 3 using the first-mover theory—list and explain example
Q1a4 advantage number 4 using the first-mover theory—list and explain example
Q1a5 disadvantage number 1 using the first-mover theory—list and explain example
Q1a6 disadvantage number 2 using the first-mover theory—list and explain example
Q1a7 disadvantage number 3 using the first-mover theory—list and explain example
Q1a8 disadvantage number 4 using the first-mover theory—list and explain example
Q1b1 advantage number 1 using the late-mover theory—list and explain example
Q1b2 advantage number 2 using the late-mover theory—list and explain example
Q1b3 advantage number 3 using the late-mover theory—list and explain example
Q1b4 advantage number 4 using the late-mover theory—list and explain example
Q1b5 disadvantage number 1 using the late-mover theory—list and explain example
Q1b6 disadvantage number 2 using the late-mover theory—list and explain example
Q1b7 disadvantage number 3 using the late-mover theory—list and explain example
Q1b8 disadvantage number 4 using the late-mover theory—list and explain example
Q2 Identify at least four examples of real firms who have been successful and four examples of real firms who have been failures using each theory (a minimum of 16 real firms in all).
Q2a1 example 1 of real firm success using the first-mover theory—list, explain example
Q2a2 example 2 of real firm success using the first-mover theory—list, explain example
Q2a3 example 3 of real firm success using the first-mover theory—list, explain example
Q2a4 example 4 of real firm success using the first-mover theory—list, explain example
Q2a5 example 1 of real firm failure using the first-mover theory—list, explain example
Q2a6 example 2 of real firm failure using the first-mover theory—list, explain example
Q2a7 example 3 of real firm failure using the first-mover theory—list, explain example
Q2a8 example 4 of real firm failure using the first-mover theory—list, explain example
Q2b1 example 1 of real firm success using the late-mover theory—list, explain example
Q2b2 example 2 of real firm success using the late-mover theory—list, explain example
Q2b3 example 3 of real firm success using the late-mover theory—list, explain example
Q2b4 example 4 of real firm success using the late-mover theory—list, explain example
Q2b5 example 1 of real firm failure using the late-mover theory—list, explain example
Q2b6 example 2 of real firm failure using the late-mover theory—list, explain example
Q2b7 example 3 of real firm failure using the late-mover theory—list, explain example
Q2b8 example 4 of real firm failure using the late-mover theory—list, explain example
PLEASE NOTE: the advantages and disadvantages require to, "comprehensively show how each advantage or disadvantage affects the use of that theory," explanation, the successes and failures simply ask you to explain why the real firm was a success or failure, stating the firm over which they succeeded or which caused their failure should be done.
Q3 Provide a definitive and unbiased recommendation of which theory to use. Provide the specific attributes which constitute the most advantageous context in which the chosen theory operates and justify recommendation with researched support, logic and examples.
Purchase this Solution
Solution Summary
The solution compares advantages and disadvantages of first mover and last mover strategies, with real-life examples and comprehensive explanations.
Solution Preview
Q1 (look at attached for better representation).
The first mover strategy implies that a firm is the first to market with new products, services, or
product enhancements. For some companies like Apple, being the first mover has given the firm a
market advantage, 1by helping to strengthen the brand and create brand awareness. In fact, bring
a product or service to market quickly, to help establish the brand and brand awareness, is an advantage
of being a first mover. By the time competitors introduce their products, consumers have already
identified the product with the first brand and may be reluctant to switch, if costs for switching are high
or they are satisfied with the existing brand.
Another advantage is that there are no competing brands for consumers to choose from.
2Consumers may be willing to accept minor design flaws or inconveniences, as they have no other
options, aside from deciding not to purchase the product. This is most beneficial to firms with products
or services that are considered necessary, less advantageous for products considered luxury items.
3Pricing is not as sensitive, when no competing products exist. The company can use a premium pricing
strategy, particularly if the product or service focuses on characteristics such as high quality, and is
marketed to particular consumers who demand high quality. 4Firms that introduce products first have
the potential to gain a larger market share, particularly if competing products do not sell as well, due to
issues of lesser quality, poorer design, or lack of brand awareness. With a larger market share, the
company has the potential to increase profit margins and can reinvest in new product development.
A disadvantage for first movers 1may be instability consumer markets and lack of clear
understanding about how the product will be received. While this typically happens when firms fail to
conduct adequate market research, it can also happen in rapidly evolving or changing markets, even
with research to back up the entry strategy. 2Another disadvantage of being a first mover is focus of
critical media on the single brand. There are critics and product reviewers in every industry, waiting for
an opportunity to pick apart a new product. Such negative publicity can hurt the firm, if the negative
review reaches too many consumers and is able to sway them.
A disadvantage of being a first mover, 3is the possibility of overlooking potential market demand
for a new technology. If consumer research is not adequate, product developers could introduce new
technology before consumers are ready for it, resulting in poor sales. A final disadvantage of being a
first mover, 4is the potential for competing products to be manufactured at a lower cost, passing the low
cost onto consumers, with low cost pricing strategy. The low cost strategy could give consumers the
incentive to switch, causing others to lose market share. This is usually contingent upon other
characteristics being acceptable to consumers. The first mover then must scramble to re-engineer the
production process to reduce costs.
The last ...
Education
- MEd, Jones International University
- BSc, DeVry University
- MPH, Walden University
Recent Feedback
- "Thank you so much!"
- "Great work"
- "thanks for the information"
- "Thanks for the information"
- "Excellent Work, very well-written, clear and concise."
Purchase this Solution
Free BrainMass Quizzes
Income Streams
In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.
Paradigms and Frameworks of Management Research
This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.
Marketing Management Philosophies Quiz
A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.
Academic Reading and Writing: Critical Thinking
Importance of Critical Thinking
Business Processes
This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.