First Mover Advantage Training Video
First Mover Advantage Best Practices
First Mover Advantage describes the dominant position held by the organization who puts a product or service on the market before their competitors. Advantage is achieved because the organization is able to establish themselves as the originator of the product or service and institute customer loyalty before competitors enter the marketplace. While competing companies will try to gain market share by improving on the initial innovation, the first mover is able to maintain the larger share because they have an unwavering customer base.
More about First Mover Advantage
Description of First Mover Advantage
While the First Mover has many benefits, there are also various challenges with being a first mover:
Benefits:
- Brand Name Recognition: When customers know the organization, it puts the company in a good position to create a wide variety of products and services that will be appealing to a big portion of the market based on the name alone. Further, knowledge of an organization helps foster customer loyalty and can draw appeal for new customers.
- Economies of Scale: Because the first moving organization is the first to create the product or service, they typically have a longer period of time to develop their product, which allows them to determine more cost-efficient ways of creating the innovation before it has to compete with other organizations.
- Switching Costs: Being the first mover helps to secure customer loyalty because when a customer has purchased the product or service, they tend not to switch because of the costs involved in doing so.
Disadvantages:
- Copying & Duplication: Being the first to put a product or service on the market puts the company in a position to have their work replicated and improved upon. Some of the organization’s market share might be more vulnerable as a result.
- Oversights: In an attempt to be the first company to sell their product or service, features of the innovation might be inadvertently left out because not enough thought was given to the design or implementation. If the market desires these features, it makes the company more susceptible to customer loss when competitors enter the market.
Praxie's Online First Mover Advantage Tools & Templates
Strategy teams can employ the new online First Mover Advantage Template from Praxie to brainstorm and develop ways to stay ahead of the competition. The First Mover Advantage Template also provides managers with guidance to help their employees define and communicate their own First Mover Advantage strategies. Data that goes into the First Mover Advantage Template is compiled into a final presentation, summary spreadsheet, or other strategic document which can be presented to a wider team.
Get started with our First Mover Advantage template.
How to use it:
- Review the template to understand the visual relationship between technology evolution and market growth.
- List the competitors in your target market space.
- Identify the specific strategy related to your own environment and business situation.
- Create an action plan based on how you will create your first mover advantage assessment.
Unlike most traditional First Mover Advantage processes, Praxie’s online First Mover Advantage tools allow any team or organization to instantly begin working with our web templates and input forms. Our digital platform goes far beyond other software tools by including progress dashboards, data integration from existing documents or other SaaS software, elegant intuitive designs, and full access on any desktop or mobile device.
