First Mover Advantage and Entrepreneurship
Should entrepreneurs strive to be first? This question haunts every founder deciding when to launch. Given the option to implement two ideas—one with early entry potential and the other with late entry potential—which should an entrepreneur run with? The Case for Going First According to Kerin et al. (1992) , "studies purport to demonstrate the presence of a systematic direct relationship between order of entry... and market share." First Mover Advantage Theory posits that new entrants who capture a market niche earliest gain specific competitive edges: Brand Awareness: Being "the original" creates a reputation for innovativeness that followers struggle to match. Supplier Lock-in: First movers can "tie up factor markets" by engaging in long-term contracts with key suppliers. This makes it harder for followers to acquire the necessary materials to compete. The Experience Curve: By starting early, the leader rides down the experienc...