First Movers Advantage
February 19, 2008 – 12:53 pmIf you’ve been a long time reader of this blog (even before the revamp) and have been reading my other blog, you’ll know I firmly believe one of the best ways to make money is operating your own business (although it’s not the only way). Today I want to go over first movers advantage.
First movers advantage is simple the general idea that if you are first to hit the market with a new product or service, or do something entirely different by replicating an existing model and be the first to improve on it, you get the “advantage” of getting the most exposure and essentially a higher customer base. Done correctly, your business should outlast the others that may enter the market and keep them at bay.
A very good example of this is eBay. It was by far the first publicly global online auction website for anyone and everyone. For many people, this is the only name they know. However back in the nineties, eBay actually had lots of competition that came along. Many of which gave it a run for it’s money. In the end, the community eBay built, the values the company upheld, and the “first movers advantage” (which I believe is the main reason), kept eBay at the top and eventually ended all the other competitors chance for entering the market.
If you have a new business idea, or a new idea to improve an existing business model, be the FIRST to market this as much as you can, and take advantage of the monopoly before it’s too late.
3 Responses to “First Movers Advantage”
So Steven. What things have you been the first mover on? I think I’ve been a follower so far, and that’s been ok. Not spectacular, but it helps pay the bills.
By Watch Anime for Free on Feb 21, 2008
Hi,
There have been quite a few different businesses I have taken advantage of being first movers on. Although listing it here would be quite long and would probably make out to be a better post, the recent corporation I launched mentioned in a previous post is a perfect example.
By Steven on Feb 22, 2008