First-Mover / Entry Barriers
Advantages gained by being the first to enter a market, which can create barriers for others.
Implications
The advantages and challenges faced by companies entering a market early, where first-mover advantages include establishing brand recognition and customer loyalty, while entry barriers might prevent others from entering the market easily, such as high startup costs or regulatory requirements.
Example
Example: A tech company benefits from first-mover advantages by being the first to launch a new software platform, capturing a significant market share before competitors can enter, while also establishing high entry barriers through patents and customer loyalty programs.
Related Terms
Different from fast followers, who enter the market after the first mover but try to quickly gain market share, first movers take on the initial risk and potentially gain significant advantages, while entry barriers protect them from later competition.
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