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Rarely has a business strategy gotten such a bad name so fast.
David M. Katz, CFO.com | US
December 31, 2002
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 | April 05, 2007 11:41 am
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