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first mover advantage

First Mover Advantage is a time-oriented competitive strategy. The pioneer companies (first movers) create sustainable image advantages and preference advantages through their early presence in a certain segment

or new market. In contrast to late movers or followers

, first movers are able to gain a large market share early on and subsequently benefit from economies of scale in production and processing. In e-commerce, there are two companies, Amazon in the online book sector and Ebay in the online auction sector, which have managed to become first movers in their markets with high marketing investments. Companies are not always able to use the first mover advantage permanently. In many cases, smart followers enter the market with an optimized product concept and thus conquer market shares.

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Englisch: first mover advantage
Updated at: 12.05.2012
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