Positives And Negatives Of First-Mover Advantage
After reading pp 15- 159 in your etext and watching the YouTube clip, please think about the positives and negatives of First-Mover advantage and how they relate to your firm.
My selected company, Tesla, an American organization within the clean energy and electric vehicle industry, can be deemed as a first-mover company. This can be deduced from the very fact that the concept of electric vehicles is somewhat new, and other firms have not quite penetrated the market. Thus, Tesla has taken an initial competitive action in the view of building its competitive advantage and equally has a heightened market position (Hitt et al., 2016). Also, the fact that it sauntered in the market and was able to successfully build electric vehicles and avail them to the public further makes for its cut as a first-mover organization. Owing to the above, the organization has a number of benefits that it enjoys as a first-mover.
The main advantage that Tesla enjoys is brand name recognition. Following its first move to create and market electric vehicles, other companies have followed suit (Tutor2u, 2016). However, Tesla is the most relevant brand when it comes to electric vehicles and can be viewed as a dominant brand in the electric vehicles industry.
It is also most likely that Tesla will benefit from economies of scale. This is because it lends technology-based products (Tutor2u, 2016). The organization can thus establish more cost-efficient means of delivering or producing a product ahead of competing with other organizations in the industry. Also, being a first-mover organization, it can easily switch costs and, therefore, have the ability to build a strong foundation as a business.
Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2016). Competitive Rivalry and Competitive Dynamics. In STRATEGIC MANAGEMENT: Competitiveness & Globalization Concepts and Cases (pp. 153-154).
Tutor2u. (2016, June 12). First Mover Advantage I A Level and IB Economics [Video]. YouTube. https://www.youtube.com/watch?v=eDaQcv9mjTI
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First-Mover Competitive Dynamic
After reading pp 15–159 in your etext and watching the YouTube clip, please think about the positives and negatives of First-Mover advantage and how they relate to your firm. Here is the clip in question: https://www.youtube.com/watch?
- If applicable, is your firm (Tesla) a first mover, second mover, or late mover? If the competitive dynamics of first mover advantage does not apply to your firm and industry, why do you believe this is the case?
- In what ways has this given your firm a competitive advantage or disadvantage?
Note: Be sure to relate your post to your e-Text and readings with proper APA in-text citations and References.