Please provide an example of ale-mover strategy and a first-mover strategy and explain the advantages and disadvantages of each strategy.
Ale-Mover (Late Mover) Strategy and A First-Mover Strategy
Example of Ale -Mover Strategy
The late (ale) mover strategy is in the limelight in many organizations. There are some advantages and disadvantages of late mover strategy. The example of late mover strategy is YouTube. YouTube was introduced after the Google video. The purpose was to analyze the streamlining process of Google video and come up with the unique service to enhance the user experience (Kosoff, 2015).
Example of a First-Mover Strategy
The example of the first mover strategy is Coca-Cola Company. It was the first companies, which entered the market and gained the sustainable competitive advantage. The company, due to several advantages of being the first mover, has increased the market share and makes the advantage quite visible (Fields, 2013).
Advantages of Ale -Mover Strategy
There are many advantages of late mover strategy. For Instance, the market viability has emerged as a top advantage for different organizations. This management of the company can predict or observed the general public acceptance of different ideas. It seems good strategy, which eliminates the risk in the business process as far as the market and operations of the company are concerned. The company can make some improvements or strategic changes through its observations. The management can take advantage of the excitement, which is already generated among the general public.
Disadvantages of Ale-Mover Strategy
The big disadvantage of the late over a strategy is the entry barrier, which can be created by the first mover. Several entry barriers can be faced by the late mover, which makes the market entry quite difficult. Also, when imitating of differentiating the products or services in the market, the company needs heavy investment to make the products or service different as compared to its competitors or substitutes. Moreover, late movers cannot earn the customer loyalty and satisfaction early, as it may take much to make the difference.
Advantages of First-Mover Strategy
The first advantage of being a first mover in the industry is the product standardization. The company can set the product standards, which may cause a good customer response. Furthermore, it has been revealed that the company can create a stronger brand image, recognition, and loyalty. It seems tough for the second mover or late mover in the industry to convert the customer. Another advantage that the company management can gain is the integration with the premium suppliers (Kosoff, 2015). Key suppliers or distributors can be identified first, and they can be sustained for a long run. The first mover can increase the switching cost of buyers. It seems tough for customers consider the substitutes or alternative, as it can be expensive. The most important thing is to create customer values, which enhance the visibility of customer loyalty and satisfaction (Peng, 2008).
Disadvantages of First-Mover Strategy
The prominent disadvantage of the first mover strategy is the heavy investment. It takes time to make customers use the new product. It has been observed that the first movers take a high business risk. For Instance, the company cannot predict the positive customer response (Fields, 2013). The customer acceptance regarding the offering a remains invisible, and it looks the disadvantage (Peng, 2008). Another disadvantage is the lack of experience, as the management has to initiate the process without any experience. In result, the product or service may fail in the market.
Thus, in this contemporary business era, the management of the company has to choose the late mover and first mover strategy. Based on the nature of the business and customer perception, an appropriate strategy can be executed in an effective and lucrative manner to gain an advantage and sustain the business success (Kosoff, 2015).
References
Fields, D. A. (2013, June 12). The Myth of First-Mover Advantage. Retrieved from http://www.industryweek.com/innovation/myth-first-mover-advantage
Kosoff, M. (2015, April 28). Where Are They Now: What beloved early YouTube stars look like today. Retrieved from http://www.businessinsider.com/where-are-youtubes-early-stars-now-2015-4
Peng, M. W. (2008). Global Strategy (1 ed.). Cengage Learning.
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