b) Early mover advantage: The benefits are many – Although the Mahindra Reva is not yet a popular car, it will always be remembered as the first producer of electric cars. This creates a challenge for followers since customers now have an anchor or reference in their minds. Early movers are likely to profit more from the reduced costs. Because of green practices, their costs are lower before others. Early movers can also challenge existing standards and influence industry them thus forcing competitors to comply or nudging customers to change.
This is a prime opportunity for SMEs. With very few SMEs going green and positioning green, clearly, this is one area where a small firm can stand to gain.