Comment on this Article

First-Mover Advantage Rarely has a business strategy gotten such a bad name so fast.

David M. Katz, CFO.com | US
December 31, 2002

First Mover

First mover advantage gives the first mover a commitment that they cannot avoid, once they have announced there decision to undertake a strategy. This is because this commitment is observed by rivals and has to be credible enough. Such scenarios will work better for a firm if its in an oligopolistic market, where we have few firms. Chances are if rivals react to such a move with a similar strategy- it would have an adverse effect on relative price and market demand. Assuming its an undercutting move.

I strongly feel in a price takers economy, there is alot to discuss and it leaves an open forum for different scenarios.

Posted by milton ochieng | Apr 5, 2007 11:41 AM ET