Timing of entry Early or late entry? First mover advantages and disadvantages

First mover advantages Non-imitable production advantages based on learning curve, scale economies, or patents Pre-empted inputs and geographic and product space Customer and supplier switching costs

First-mover disadvantages Have to make investments to create the market May have chosen wrong design in fast moving markets—followers can benefit from experience of first movers May have been more constrained by rules and regulations than followers

Strategies for late entrants Benchmark and Sidestep (Jollibee) Find undefended niche (Airbus, Embraer) (Haier with wine coolers) Introduce new business concept and/or technology (Hardy’s)