First Mover and The Last Mover Theories (Essay Sample)

First Mover and The Last Mover Theories
Advantages of First Mover
It is easier to refine the existing product. 
The company will be better placed to benchmark its progress
Breaking down where others have succeeded is an incredible approach to benchmark where the new entrant in the market is in the new market. Besides, the company would not consider their choices as being discretionary. 
Better research opportunities
The entrant may be well placed to examine the products in the market and understand the best ways to enter or products to introduce. It is always difficult to do a client testing in theory. However, it is decently simple to purchase a portion of the first movers' items and understand what their clients dislike. 
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Last mover theories
Advantages
Disadvantages
The competitor dictates the standards of the products. 
The markets are always dynamic in nature, but the first movers always dictate the market prices. Stemming from their experience and loyalty from their customers, the late movers may find it extremely difficult to come up with new standards that would be emulated. Likewise, impersonation is unmanageable, and the slack between beginning innovative work and item presentation could be far reaching (Markides & Geroski, 2005).
Catch-up is the only way to go
The new entrants always lack any other option rather than playing catch-up, which is costly and time consuming. The returning clients that are always identified with the first movers may be difficult to acquire and convince. The new late movers, therefore, have no choice but to operate with the already set market structures. 
Consumer Loyalty is always earned by the existent businesses
Client devotion for the products of the pioneering firms has a tendency to be more excellent than for late mover items. The early mover's business sector and focused position are settled by the postulated loyalty from their clients. Customers tend to associate with the existing products in the market, forcing the entrants to come up with costly measures in a bid to counter the loyalty. 
Entry Barriers are always created by first movers
Entry barriers always exist in new markets mainly set by the first movers who do not want competition. They may do that by buying any competitors in the market, leaving them as the only major suppliers of the products. They may also slash up their prices basing on the existing market conditions, since they would have already tested the latter.
2. 
First Mover Real firms that failed
Sony fabricated its method as well as its whole corporate theory around Ibuka's concept of 'working on things that nobody else is eager to do'. It brought the idea to the market quicker than the opposition and emanated as an individual fixation. It is also viewed as one of the foundations of Sony's quick development and proceeded achievement.
Online auctioning was first launched by eBay, which commenced its given processes in 1995. This has also been one of the most trusted companies that clients feel safe while trading. Their policies always protect the clients and, therefore, less fears of missing out on a given deal. 
Coca-Cola that is a revered organization in line with production of beverages is a force to reckon. It has commanded the markets for a long time despite the constant competition from other players in the same realm. 
Google, as a search engine has been one of the major online sources of information. It links people with other sites that are pertinent to their success. Despite the competition from other service providers, it has a major history that supports it. 
First Mover Real firms that failed
It is always worth noting that business people are better off building the second or third form of the existing firm. Visicalc, the most revered system in line with the spreadsheet, blurred when Lotus assumed control over the field with the postulated 1-2-3. However, the Lotus did not last as Microsoft Excel took over the market by storm (Golder & Tellis, 2013).
Digital Research is known to have come up with the first desktop working framework, referred to as CP/M. This did not last as it is widely known Bill Gates upgraded it in the opposition to supply a working framework for IBM’s personal computers. 
Prodigy Communications is also a renowned first mover in the realm of online associations. It boasted of capable sponsor, IBM, Sears Roebuck and CBS, which was evident in 1984. Its central dealings were on online shopping, yet two decades excessively early. Supporters in those days were more intrigued by talk rooms, but eventually sold due to poor performance.
Dumont headed the route in offering TV sets when the latter emanated as new contraptions. However the organization missed out to latecomers like Motorola and also RCA and Motorola. It represents the notion that not all first movers succeed in their quest (Lieberman & Montgomery, 2010). 
Real firms that embraced the late movers’ theory and succeeded
Sony Erickson failed in its bid to be a major player in the telecommunications industry. However, it did not succeed in its quest as a major player in the same industry, since there were other groups like Samsung and Apple that have their ground established. 
Wal-Mart is also a company that embraced the late movers’ theory but ended up failing. Its problems with employees affected its performance.
Phillips started well in the television industry, stamping foot in most of the markets. However, competition pulled it out of the market. LG and Sony now boast of being the major players in the industry.
Instagram also failed in the social realm, and was later sold to Facebook (Kalyanaram & Robinson, 2012).
3. 
Despite the fact that the theory of late mover, stemming from its given history, appears to be a more secure technique to surety benefit achievement, it does not have the profit of brand acquaintanceship that first mover hypothesis builds for the organization. It all depends on the goal of the given company, which, if relates to the loyalty of the brand, may not be clearly brought out with the late mover theory. If the organization's objective is to become an aggressive association in the customer advertise and exploit distinctive patterns with moment income satisfaction, then late mover hypothesis may extremely insightful. An official conclusion is dependent upon evaluating the imminent target demographic and also results objective that the organization is striving to accomplish (Markides & Geroski, 2005).
References
Golder, K. & Tellis, G. (2013). "Pioneer Advantage: Marketing Logic or Marketing Legend?" Journal of Marketing Research.
Kalyanaram, W. & Robinson, P. (2012). Order of Market Entry: Established Empirical Generalizations. Marketing Science. 
Lieberman, M. & Montgomery, K. (2010). First-Mover Advantages. Strategic Management Journal.
Markides, P. & Geroski, K. (2005). Fast Second: How Smart Companies Bypass Radical Innovation to Enter and Dominate New Markets. Jossey-Bass, San Francisco.