In marketing, first-mover advantage or FMA is the advantage gained by the initial ("first-moving") significant occupant of a market segment. It may be referred to as Technological Leadership. This advantage may stem from the fact that the first entrant can gain control of resources that followers may not be able to match. Sometimes, the first mover is not able to capitalize on its advantage, leaving the opportunity for another firm to gain second-mover advantage.
Originally made apparent by the ever booming Internet phenomenon, it has recently been on the decline due to the recent economic downturn. Sometimes, first-movers are rewarded with huge profit margins and a monopoly-like status. Other times, the first-mover is not able to capitalize on its advantage, leaving the opportunity for other firms to compete effectively and efficiently versus their earlier entrants. These individuals then gain a "second-mover advantage".
Read more about First-mover Advantage: Mechanisms Leading To First-mover Advantages, First-mover Disadvantages, Issues For Future Research, Implications For Managers, Second-mover Advantage
Famous quotes containing the word advantage:
“It is in the gift for employing all the vicissitudes of life to one’s own advantage and to that of one’s craft that a large part of genius consists.”
—G.C. (Georg Christoph)