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The "First-Mover" vs. "Late-Mover" Theory

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The managers of your company are deciding whether to develop a brand new product not yet seen in the marketplace or a version of a competitor's product that has already been launched into the marketplace.

Management has called a meeting to discuss which way to go. They want to know if they should follow the "first-mover" or "late-mover" theory. You have been assigned the task to develop a presentation for this meeting that will give evidence that either supports or disagrees with these theories. Please provide examples on these terms as well as examples to support your position.
In the speaker's notes of the PowerPoint slides, elaborate on the bullet points you placed in your presentation and provide information to support your claim.

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Please see response attached. I hope this helps and take care.

SAME AS RESPONSE ATTACHED

I located an excellent article addressing the advantages and disadvantages of both first and late-movers, as evidenced through the use of real live examples e.g. mostly e-commerce examples.

Let's take a closer look:

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The managers of your company are deciding whether to develop a brand new product not yet seen in the marketplace or a version of a competitor's product that has already been launched into the marketplace. Management has called a meeting to discuss which way to go. They want to know if they should follow the "first-mover" or "late-mover" theory. You have been assigned the task to develop a presentation for this meeting that will give evidence that either supports or disagrees with these theories. Please provide examples on these terms as well as examples to support your position. In the speaker's notes of the PowerPoint slides, elaborate on the bullet points you placed in your presentation and provide information to support your claim.
Response:

First or Late Mover Advantage in e-Business

- Pros and Cons: Using Real-Life Examples

& The First Mover Strategy
& The EC Marketplace
- Characteristics
- Importance of the Domain Name
& First Mover Advantages in EC
- First Mover Success - Amazon
- First Mover Failure - Netscape
& The Late Mover Strategy
& Late Mover Advantages in EC
- Late Mover Success - Google
& Late Mover Disadvantages in EC
- Late Mover failure - Barnes & Noble
& Conclusions

First Mover Advantage

Does the early bird get the worm?
& Definition: When the firm that enters the market first achieves a sustainable advantage compared to subsequent followers
& Most research has been done with brick and mortar firms

Example: The Cola Wars

& Coca-cola: launched in 1886; leading world manufacturer and distributor of non-alcoholic beverages; first to launch international campaign in the 1950s
& Pepsi: launched in 1898; had gone bankrupt in 1923; 1972 - was first Western product available to consumers in Russia where it achieved first-mover advantage and maintains it today over Coke (6:1)
& Worldwide market shares:
- Coke 43.1% Pepsi 31.7%
- Product innovation

Differing ...

Solution Summary

By definition and examples, this solution debates the "first-mover" or "late-mover" theory in point form. It also evaluates in terms of advantages and disadvantages of each theory.

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First-Mover vs. Late-Mover

The managers of your company are deciding whether to develop a brand new product not yet seen in the marketplace or a version of a competitor's product that has already been launched into the marketplace.

Management has called a meeting to discuss which way to go. They want to know if they should follow the "first-mover" theory or "late-mover" theory. You have been assigned the task to develop a neat and organized report for this meeting that will give evidence that describes and discusses either supports or disagrees with these theories. You may use the Library or other Web resources to find more information on these terms as well as examples to support your position.

As a new consultant, you really don't know much about the company involved, the potential products that the managers want to discuss in their meeting, nor the personalities of the managers who will be attending the meeting. The very best that you can really do within the given scenario is to thoroughly and factually explore both of these theories in your report as input for their discussion during the remainder of the meeting.

You should 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.

In the end, state your opinion as to which theory to use and justify your recommendation - this is where your research should show. You should state what conditions/assets/resources are needed to better achieve success with the theory you recommend and justify your decision with research, example and logic.

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