First and Late Mover Companies or Products

Other areas that affect new entry into a market include capital requirements, economies of scale, and brand identity. All of these factors have been discussed to some degree under other

new competitors and they will tend to copy the ideas of products and try to dominate the

Primary assumptions to the theory include, high barriers to entry and exit, high sunk costs and imperfect knowledge of the market. In addition, this paper will analyze the company’s current standing in the market along with competitive strategies executed to grasp a greater portion of market share.

This will definitely create a first mover advantage. To be the first one of a product will create this advantage and put you a head of competitors.

A majority of the attractiveness stems from the abnormally low buyer and supplier power. However, this gain is offset by the current low barriers of entry and high competitive rivalry. In order to remain competitive, incumbents must (1) invest heavily in research and development, (2) secure technology via patents, (3) market heavily to monetize products, all of which will diminish bottom line results.

Most markets are highly competitive, even if there are only a few organizations offering the product – the competition is for both initial and repeat sales. And of course, all organizations want their “slice of the pie”. With new adventures, however, come large risks. A successful company knows beforehand any issues that might arise so as to best plan how to deal with

Threats - heavy competition in the industry, foreign manufacturers dumping products in the U.S., environmental compliance costs

Potential for new entrants - The primary prevention to entrance are higher barriers within industry with the threats of new entrants as competitors (Porter, 1998).

Threats: big competitors; loosing money in the process of implementation international strategy; lack of promotion; etc.

Market entry risks such as cultural differences, competitors, legislation, transportation issues, infringement of intellectual property rights and copyright.

Opportunities include huge market, no competition for at least three years, potential huge margin, good marketing strategy.

Entrants erode the market and rarely grow it enough to the incumbent’s advantage. New entrants have an impact on the industry business but at a moderate level. This is mainly because new firms will find it difficult to compete against the incumbents’ strong brand, like Starbucks and McDonalds, and because the market is saturated. However, the costs of entry are relatively low. Most of the raw materials are cheap and the distribution chain is not complicated. This makes it easy for new companies to enter the market. Also, established companies might leverage their brands as they enter the industry to compete against the incumbents.

New entrants in the industry that are battling to have a share of the market

Next disadvantage is that market pioneers will face market and technology uncertainties, which is a primary reason of failure for startups. Lastly, a shift in customer’s needs is required in order to create demand for the market pioneer’s new product or

This second mover strategy is a competitive response to first movers' competitive actions and is illustrated by imitation. Taking the time to monitor customer reaction to product improvements and avoiding the blunders and prices of new product launch are compatible with Dell's successful business model. This approach also provides Dell with time to develop more effective processes and technologies or create extra value for