2nd Mover Advantage - Being a Pioneer Can Kill You

[NoisyCricket]

[The rolling sound of Curtains opening signals the entry of the Announcer who enters the theater from stage left, with only a single pinlight on the speaker as he alights from the darkness and positions himself on center stage.. and speaks:]


Everday we see countless people stuck in their jobs, someday wanting to put up their own businesses, but don't know how. Take courage. Keep your eyes and ears open: what you learn from the business, and the mistakes your management makes, just may be the keys to running your own business one day. Know what you're doing. Understand it. Think for Yourself. And lastly, Know What NOT To Do... There is a new trend emerging in the United States people are starting to call the "2nd Mover Advantage", which states just that.. sometimes it's not great to be the first. Others may be wait and see's, and who will pick up on your mistakes.

Lessons to be learned:

1. Do it right the first time. Have all the business plans ready and available to launch the full version of the product. A "learn along the way" mentality may kill you.

2. Know what you want. And how to get it.

3. Make sure you work with a core group who you can trust, and who trust you. You'll get nowhere fast if everyone has his or her own agenda. Teamwork is critical.

and as a friend says,

4. Start it yourself the first 4 months - don't sell out to big companies -- or you may lose sight of your true objectives.


[BLACK OUT. Curtains close as darkness reclaims the theater once again.]

[KuyaDanny]

I might comment that Japanese industry propelled itself to greatness in the 60s, 70s, and 80s, almost entirely by being the second movers in the markets they were competing in.

[NoisyCricket]

Originally posted by Noisy Cricket:

So whose idea do we shhhteal? hehehe!

Not stealing, Cricket. That's against the law. We borrow, and improve. ;)



[This message has been edited by KuyaDanny (edited 08-13-2000).]

[nix]

I still believe that first mover advantage, for as long as the timing and the execution is right, still is the more leverageable advantage.

[makiling]

why is this so nix? a lot of people tell me what matters is that you be the first. you will always be top of mind. on the other hand the arguments above seem to be very valid.

So right now I really do not know whether to think of a great big new idea or just try to polish someone else's :-))


Originally posted by nix:
I still believe that first mover advantage, for as long as the timing and the execution is right, still is the more leverageable advantage.

[NoisyCricket]

Originally posted by Noisy Cricket:
Not stealing, Cricket. That's against the law. We borrow, and improve. ;)

[This message has been edited by KuyaDanny (edited 08-13-2000).]

of course of course of course, KD :D

Funny talaga si Kuya Danny http://www.pinoyexchange.com/lol.gif

[This message has been edited by Noisy Cricket (edited 08-13-2000).]

[CaRaMBa]

Though this may be true, I still think that if you play your cards right First-Mover is still the way to go. I guess I can say Second-Mover advantage is more of an exception, not the rule.

You get number 1 brand recall and that's a big thing. However with the Internet, you really have to deliver, if not, well, say bye bye to your visitors. So you have to back up your being first with something too. You can't just use that if you want to survive.

[NoisyCricket]

Originally posted by CaRaMBa:
Though this may be true, I still think that if you play your cards right First-Mover is still the way to go. I guess I can say Second-Mover advantage is more of an exception, not the rule.

You get number 1 brand recall and that's a big thing. However with the Internet, you really have to deliver, if not, well, say bye bye to your visitors. So you have to back up your being first with something too. You can't just use that if you want to survive.

Yeah. Actually I agree with both sides. Let's see. Who were the first movers? KD, help me out on this one..

Yahoo!, Ford, IBM, Colgate.. (hehehe sqwater!!!)

2nd Movers: I think PALM is a 2nd mover. I know the first PDA was something developed by Apple in 1993. It was called the Newton. (Nax! Meron akong natututo sa class!) I wonder what ever happened to that one..

aah... definitely INTEL was a first mover, and look what kind of marketing share they have now.. I guess we can throw in MICROSOFT there as well..

[nix]

makiling -- Of course, execution is very important with regard to maintaining first mover advantage.

First mover advantages:

-- Opportunity to erect barriers to entry
-- Pick of the best customers, partners and suppliers (everyone is still available)
-- Create stickiness/loyalty by setting standards and writing the “rules of the game” (I.e. set the “standard interface” that people will get used to and thus prevent them from switching)
-- Easier to win market share from “empty space” than from competitors, lower acquisition/marketing costs
-- “Automatic” brand association

And so on and so forth ...

Samples of market caps of first movers vs. laggards ...

Intel (440 Billion$) vs. AMD (12 Billion$)
Yahoo (67 Billion$) vs. Lycos (5 Billion$)
Ebay (21 Billion$) vs. Surfing Bananas (uh ...)
So on and so forth ...

If you do have first mover advantage, and you execute properly, continuously reinventing your product and your service, then you will have an unbeatable edge.

Of course, timing will also have to come to play.