First-mover advantage is a kind of strategy which is defined as a first significant company to move into a market, not simply the first company. For example, “Amazon.com may not have been the first seller of books online, but Amazon.com was the first significant company to make an entrance into the online book market. First-mover advantage can be instrumental in building market share, but this may or may not translate into business success”.
A firm or an industry will be benefited with this strategy only if rate of return in the investment rationalize the risk associated with that investment. Sometime industry or the firm may enjoy tremendous pros of the first mover advantage by enjoying even a monopoly power. Microsoft for example, was the pioneer in personal computer operating system, and it has maintained that leadership position ever since its first product 19 years ago.
Being a first mover is not always profitable for business because being first to move means we have no paths to follow and no wisdom to heed as there is no one out there before us from whom we can learn from.
While talking about our Industry I think the first mover does enjoy the good return on investment because of the benefit to being the first business to enter the marketplace with a new product or service. The key fact is that there is no competition at all. Besides this, one may receive greater attention due to the fact that they are pioneering a new concept. “The added attention can lead to new customers. If the product or concept is unique, first to market also entitles an enterprise to protect its idea from being used by competitors through patents or copyright”.
Few years ago, we became the first mover by entering the new market segments where there was no hospital at all. We skim the market for around 2 years and now there is little competition. But we still enjoy more than 69 percent of the market share.
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