Timing of entry

Early or late entry? First mover advantages and disadvantages

First mover advantages

• Non-imitable production advantages based on learning curve, scale economies, or patents

• Pre-empted inputs and geographic and

product space

• Customer and supplier switching costs

First-mover disadvantages

• Have to make investments to create the market

• May have chosen wrong design in fast moving markets—followers can benefit from experience of first movers

• May have been more constrained by rules and regulations than followers

Strategies for late entrants

• Benchmark and Sidestep (Jollibee)

• Find undefended niche (Airbus, Embraer)

(Haier with wine coolers)

• Introduce new business concept and/or technology(Hardy’s)