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First to Market Organisations: Market Share Fluctuations Despite Initial Market Gains

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Entry strategy, te first-mover denotes the primary company to move into a new product market who often acquires significant market share because of the innovative and unprecedented nature of its newly developed product. A the first-mover, rvalling competition is virtually non-existent and consumers will "gobble up" the new product concept; oten in mass quantities that can sometimes be referred to as fad buying. Tere is little doubt that becomingthe pioneering company has its initial profit advantages when faced with zero product rivalry. Asignificant example of such a situation can related to the Atari video game system craze in the 1970s.

I a time where electronic gaming systems were in their infancy, i is a logical assumption that consumers viewed the technology as a breakthrough product which encouraged mass production of the systems, gnerating substantial profit for the manufacturer. I such a situation, ay risk factors for the first-mover are virtually obliterated and the industry can enjoy its (usually temporary) monopoly within that product market. Te second-mover advantage, i relation to Atari gaming systems, les in other industries such Nintendo, wich in just a few years virtually overwhelmed and eroded Ataris market share by improving on the existing gaming system and introduced a revolutionary product designed to outsell its competitors product by making Atari obsolete in comparison technology.

A a second-mover, Nntendo reaped the benefits of observing Ataris initial success strategies and utilised its resources to manufacture a superior gaming product. I is in situations such as this where the second-mover enjoys a substantial lead within the market and can often demolish the first-movers market share percentages by on continuous improvements designed to satisfy the consumer demand for technologically superior products or services.

I is not only the technology sector that shows a marked advantage to the second-mover philosophy, bt in a wide variety of products and services markets where the emerging industry can consume more of its available resources to improving upon existing items in order to surpass the pioneering entity. Cntributing literature suggests that the first-mover does, ideed, gin a marked advantage over followers when firms correctly predict individual consumer choices with their market locations. te first-mover obtains lower sales and profit when consumers exhibit large. ..

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preview essay on First to Market Organisations: Market Share Fluctuations Despite Initial Market Gains
  • Pages: 20 (5000 words)
  • Document Type: Essay
  • Subject: Marketing
  • Level: Undergraduate
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