First Mover Advantages

Executive Summary
There has been numerous contradictory theoretical and empirical research conducted about first mover advantages. The paper examines the existence of first mover advantages, the potential first mover advantages and disadvantages, and the influence of environment on entry strategy. Strategic management decisions need to be based upon the potential first mover advantages and disadvantages, and within the context of industry environment coupled with an assessment of the firm individual resources and capabilities, to ensure that their chosen entry strategy will lead to sustainable competitive advantage.
Introduction
First movers or market pioneering is when a firm “proactively creates or is the first to enter a new product market arena that others have not recognised or actively sought to exploit.” [Covin, Slevin, & Heeley 2000: 177] First mover advantage refers to the notion that the initial occupant of a strategic position gains access to resources and capabilitie...