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First Place Ribbon for Dog (CSA Images/Printstock Collection)
First Place Ribbon for Dog (CSA Images/Printstock Collection)

First-mover

First-mover advantage truths Add to ...

Don’t underestimate how difficult it is to get a first-mover advantage. Twitter, Skype and Facebook are the exception, not the rule.

  • Being the first mover isn’t as important as most entrepreneurs believe: first movers can advertise opportunities that attract the attention of larger competitors.
  • Being the first to market isn’t as important as staying ahead of the competition.
  • Maintaining the first-mover advantage means creating value others can’t imitate.
  • It’s easier to serve a small, high-margin niche than to create a first-mover advantage. For example, consider Germany’s Mittelstand, which comprises numerous successful small-to-mid-sized companies. Many of these companies may sound “boring,” e.g. pump producers that target specialized, high-margin markets. But the “Mittlestand” frequently generate high margins over long periods of time, and are sustained by regular process innovation.

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