First-Mover Advantage (FMA) refers to a company/organization that launches a breakthrough product or service in the market to gain an advantage over its competitors.
What Is a First-Mover Advantage (FMA)?
First-Mover Advantage (FMA) refers to a company/organization that launches a breakthrough product or service in the market to gain an advantage over other contenders. The competitive advantage that comes from being the first to enter the market arena is creating brand recognition and customer loyalty even before the entrance of your competitors in the field. They typically receive brand leadership and loyalty, but they must continue to adapt in order to avoid being eclipsed by competitors.
You must be able to reach out to consumers first and leave a lasting impression, which may lead to brand awareness and loyalty. You will also be able to manage resources by locating in a strategic area, creating a premium contract with essential suppliers, or acquiring skilled personnel.
FMA has a lot of advantages, however, it also comes with some cons, such as being the first product or service in an industry does not always provide you with an advantage. Also, you may spend a lot of money persuading clients to try out a new product. Later entrants would benefit from these educated buyers and would not have to invest as much money in consumer training.
Newcomers to the field can avoid the errors you made as to the first mover. If the first entrant fails to capture the attention of customers with their products, subsequent entrants may capitalize on this.
Overall, being an FMA is beneficial in emerging markets like blockchain where advancements are yet to be made.