“Legitimacy vacuum, structural imprinting, and the first mover disadvantage.” Academy of Management Journal 53.5(2010): 1153-1174. Print.ĭobrev, Stanislav, and Aleksios Gotsopoulos. ![]() “Entry into Banking Markets and the Early‐Mover Advantage.” Journal of Money, Credit and Banking 39.4(2007): 775-807. Works Citedīerger, Allen, and Astrid Dick. Lastly, the approach allows an organization to create brand loyalty and identity, which is critical in creating a competitive advantage over other industry players. Further, the first-mover plan allows a business to gain strategic and scarce resources that are vital in determining the success of an organization. The first-mover strategy allows businesses to develop and attain technological leadership, which is hard to be duplicated by their competitors. In conclusion, the first-mover approach is preferable since it offers important advantages over the second-mover plan. Hence, first-mover advantage offers a business an opportunity to create brand uniqueness and allegiance, which can drive its success over is competitors. For example, some of the companies that have prevailed due to first mover advantage include Coca-Cola and Sony among others that have managed to create a strong brand loyalty and identity (Sirsly and Lamertz 26). Once an organization gains brand loyalty, it is difficult for others to compete with the first mover. Further, such an advantage allows a business to create a reputation that other later entrants will be benchmarked against (Varadarajan, Yadav, and Shankar 301). In this case, a business is likely to resonate well with customers who identify with the organization or product (Kopel and Löffler 147). The other important advantage that first-mover organizations have is the creation of a brand loyalty. Further, since the business is the first to enter a given market, it can purchase resources at a cheaper price as compared to what will prevail once the market evolves. ![]() Such resources give the first movers a competitive advantage, which allows the businesses to be more successful and profitable. In this case, in the first-mover scenario, a business can acquire the existing resources such as locations, shelf spaces, or geographical location before others can venture into the business area (Dobrev and Gotsopoulos 1155). In the management decision-making process, it is important for organizations to strive to attain scarce resources that offer an advantage over competitors (Thijssen 2448). The second reason why first-mover advantage is more preferable is the preemption of scarce resources. Hence, they can use a given technology exclusively before others enter a given area. For example, pioneer companies are often protected through patents and intellectual property laws. ![]() As such, a first-mover business can enjoy a technological advantage over second movers. The process of developing new products involves research that leads to the establishment of new technologies that are currently not in the market (Berger and Dick 775). Such an organization has the technological leadership of the products it creates. ![]() Firstly, from a management viewpoint, any business that acquires customers in an area where other companies have not been established ends up being the market leader as the pioneer in the given business area.
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