MGMT 4P90 Chapter 6: MGMT CH 6 Text Book Notes
12 Mar 2017
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First mover an initial entrant to a market. First-mover advantage exists when making the initial move into a market allows a firm to establish a dominant position that other firms struggle to overcome. A first mover cannot be sure that customers will embrace its offering, making a first move inherently risky. First movers must be willing to commit sufficient resources to follow through on their pioneering efforts: bears the cost of developing the product and educating customers. Some studies suggest that first moving offers little or no advantages. Disruptive innovation an innovation that conflicts with, and threatens to replace, traditional approaches to competing within an industry. Smartphones, for example, have wreaked havoc on the video camera industry. Foothold a small position that a firm intentionally establishes within a market in which it does not yet compete. Swedish furniture seller ikea is a firm that relies on footholds. Ikea enters a new country, it opens just one store.
