What is first-mover advantage in marketing?

In marketing strategy, first-mover advantage ( FMA) is the competitive advantage gained by the initial ("first-moving") significant occupant of a market segment. First-mover advantage enables a company or firm to establish strong brand recognition, customer loyalty, and early purchase of resources before other competitors enter the market segment.

What is a first mover?

A first mover is a service or product that gains a competitive advantage by being the first to market with a product or service. Being first typically enables a company to establish strong brand recognition and customer loyalty before competitors enter the arena.

Is early entry a 'first-mover advantage'?

Although the term suggests that early entry is desirable, the advantages of pioneering a new market are often offset by disadvantages. The question of whether a ‘first-mover advantage’ is likely on balance in any specific context depends on the characteristics of the emerging market and the entering firm.

What are the disadvantages of being a first-mover?

Although being a first-mover can create an overwhelming advantage, in some cases products that are first to market do not succeed. These products are victims of first-mover disadvantages. First-mover advantages are typically the result of two things: technical proficiency (endogeneic) and luck (exogeneic).