First Mover Advantage

This article surveys the theoretical and empirical literature on mechanisms that confer advantages and disadvantages on first-mover firms. Major conceptual issues are addressed, and recommendations are given for future research. Managerial implications are also discussed. First Mover-A Company which is first to establish itself in a given market or industry with its product or service. The first-mover advantage refers to any advantage which is gained by a company that first launches a product or service in the market place. The first-mover advantage helps a company to establish strong brand recognition and product/service loyalty before other competitors enter in the market. We can say that it refers to a large company that moves into a market. For example, Amazon was not the first company to sell books online. However, it was the first company to achieve significant scale in that line of business.