Late mover Advantage
The advantage a company gains by being one of the later entrants to sell a product or provide a service, when technology has improved and can be copied easily.
Late mover advantage refers to the benefits that a company may receive by entering a market after other companies have already established themselves. Here are a few ways in which being a late mover can be advantageous:
- Lower research and development costs, since the technology or product has already been developed by the first movers.
- Learning from the mistakes of the first movers and improving the product or service.
- Differentiating the product or service to target a specific niche or customer segment.
- Accessing a more mature market with established customer demand and purchasing behaviors.
- Entering the market with a lower cost structure, allowing for price competition.
While being a late mover can offer advantages, it also comes with its own set of risks, such as entering an already saturated market, facing established competition, and potentially lacking the innovative edge of a first mover.