First-Mover (Pioneer) Advantage
Part 1. Marketing Strategy
Published Online: 15 DEC 2010
Copyright © 2011 John Wiley & Sons, Ltd. All rights reserved.
Wiley International Encyclopedia of Marketing
How to Cite
Golder, P. N. 2010. First-Mover (Pioneer) Advantage. Wiley International Encyclopedia of Marketing. 1.
- Published Online: 15 DEC 2010
First-mover (or pioneer) advantage is the long-term reward that may accrue to the first company to enter a new market. Five key theories underlie a potential first-mover advantage: ease of recall, brand loyalty, technological leadership, economies of scale and experience, and resource capture. Many empirical studies report results that support a first-mover advantage. However, subsequent research has found that correcting for important limitations results in first movers having substantially lower rewards than found previously. These diminished rewards have led to a reconsideration of first movers' theoretical advantages. All such theories rely on the presumption that first movers are successful on one or more important dimensions. While some first movers are successful, most are not. Companies seeking to establish a first-mover advantage would be wise to regard the situation as a first-mover opportunity instead.
- first-mover advantage;
- pioneer advantage;
- late mover advantage;
- market entry;
- entry timing;
- launching new products;
- marketing strategy;
- competitive strategy