Share
Explore BrainMass

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

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.

Solution Preview

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:

-----------

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.

$2.19