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Later Mover (Nonpioneer) Advantage

Part 1. Marketing Strategy

  1. Peter N. Golder

Published Online: 15 DEC 2010

DOI: 10.1002/9781444316568.wiem01029

Wiley International Encyclopedia of Marketing

Wiley International Encyclopedia of Marketing

How to Cite

Golder, P. N. 2010. Later Mover (Nonpioneer) Advantage. Wiley International Encyclopedia of Marketing. 1.

Author Information

  1. Tuck School of Business at Dartmouth College, Hanover, NH, USA

Publication History

  1. Published Online: 15 DEC 2010

Abstract

Later mover (or nonpioneer) advantage results from the challenges faced by first movers and the associated opportunities created for later movers. First movers face five key disadvantages relative to later entrants: free-rider effects, technological discontinuities, missing consumers' ideal point, shifting consumer tastes, and incumbent inertia. Rewards for first movers are much lower than reported in studies initially supporting a first-mover advantage. First movers long-term survival rate is 36%, average market share is 6%, and market leadership rate is 9%. Overall, both first movers and later entrants should not expect that entry timing alone will be a major factor in either firm's long-term success. Instead, all firms should focus on persistently developing their new products and new markets, and then relentlessly innovating and pursuing associated market opportunities to capitalize on their past successes.

Keywords:

  • first-mover advantage;
  • pioneer advantage;
  • late mover advantage;
  • market entry;
  • entry timing;
  • launching new products;
  • marketing strategy;
  • competition;
  • competitive strategy