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FIRST vs. LATE MOVERS
Strategic Management
First vs. late-mover theory
First mover theory seems intuitively 'correct' given the commonly-cited cliche that the 'early bird gets the worm.' This could also be interpreted as 'the early bird gets the customers,' as was the case in the VHS-Beta wars of the 1970s. Despite second-mover Beta's superior technology, Sony VHS's first-mover advantage in locking in customers proved insurmountable (Wong 2003: 8-9). 'Switching costs' for consumers also keep consumers' locked into their initial choices, as can be seen with the oft-maligned Microsoft Windows. Because computer operating systems are so difficult and costly to switch, many people and organizations cannot afford to start from scratch. First movers get to shape the use of the available technology to their needs, just as Apple was able to have great influence upon the shaping of legally downloaded music, fusing...
Finally, consumer preferences based upon habit can be very easy to 'lock in,' as is seen in how Coca-Cola, one of the first mass-marketed soft drinks, is now synonymous with soda (First mover definition, 2012, Investopedia).
However, not all firms make use of their first-mover advantage. Sometimes being first gives insufficient time for the firm to solidify its approach to consumers. This was the case of the first company formed by Alexander Bell, American Bell Telephone Company (ABT). "ABT chose to extract its monopoly rents and continued to charge high prices throughout the period of its patent monopoly. Consequently, competitors were able to effectively enter the market by the turn of the century" and lower prices (Wong 2003: 13). First mover status can lock a company into a particular business model, allowing it to grow quickly out-of-date, as was the case of AOL as a dial-up…
references, based upon observing existing behavior patterns.
Beyond that, there is little evidence of clusterization either domestically or in the global market The sugar industry is in decline. However, there remain a few opportunities. The first major opportunity is the growth in China. One of the true growth markets in the sugar world, China is increasing in affluence and increasing its consumption of sugar-laden Western foods. The Chinese market increased by two-thirds in just six years, from
The following Table labeled Table 1.0 shows the Direct Competition Comparison in the industry sector of Marriott International, Inc. Table 1 Marriott International is known for being creative and especially so in relation to the IT dollar. In a report entitled "The Keys to Marriott's Success" stated is that "Marriott and its IT department have documents and system, policies and procedures and even history and philosophy to guide their decisions frees
Strategic and Tactical Planning- Definition Strategic Planning - Through the Years The Eight Maxims of Strategy Benefits and Costs Associated with Strategic Planning The Need for Strategic Planning Successful Implementation of Strategies The Effects of Strategic Planning - Literature Review Strategic and Tactical Planning - A Case Study of the Early 1990s Strategic Planning - The Present Scenario The Conclusions, Recommendations and Areas of Future Research STRATEGIC AND TACTICAL PLANNING A paper on the Strategic and Tactical Planning. The paper defines
While companies of all types and sizes stand to benefit from strategic alliances, the relevant literature indicates that companies competing in the hospitality industry are particularly well situated to gain a competitive advantage in this way. In this regard, Rahatullah and Raeside report that, "The strategic alliance literature reveals that resources alone can not bring competitive advantage, but complementary resources can contribute to the strategic fit of partners in the
Compass has the experience in the U.S. with these markets to exploit this opportunity. The military and offshore markets have also been identified by management as strong potential sources of growth in the UK. Another opportunity is with new markets, which include arenas, zoos and other public facilities. This emerging market is relatively untapped, and its size somewhat undetermined, pending the creativity of the catering industry. There appears to be
Managerial Economics The company that I am going to write about is Apple, Inc., which designs and markets personal electronics devices, software and accessories. Apple is known for its strategic control systems, both in terms of behavior control and information control. Chapter 9 notes that there are two different approaches to informational control, the traditional approach and the contemporary approach. The traditional approach compares performance against standards while the contemporary approach