Conditions That Lead to First-Mover Advantages
♦When pioneering helps build a firm’s reputation with buyers and creates brand loyalty.
♦When a first mover’s customers will thereafter face significant switching costs.
♦When property rights protections thwart rapid imitation of the initial move.
♦When an early lead enables movement down the learning curve ahead of rivals.
♦When a first mover can set the technical standard for the industry.