After studying the third Session Topic entitled 'First Mover Advantage' and also watching a video on

the same topic, answer the following questions:

1.What are the advantages of becoming First Movers in business?

The advantages of becoming First Movers in business are

a. Technology leadership

First movers can make their technology/product/services harder for later entrants to replicate. For
example, if the first mover reduces the costs of producing a product, then they will establish an
absolute cost advantage, not just a marginal cost advantage. Not only this, but the first mover will be
able to apply for patents, copyrights, and any other protective advantages that will further enhance
their establishment in the market.

b. Control of resources

The second type of first-mover benefit is the ability to control resources necessary for the business that
are of a higher quality than resources later entrants will be able to use. An example would be the
advantage of being the first company to open a new type of restaurant in town and being able to obtain
a prime location.

c. Buyer Switching Costs

The final type of benefit that first movers may enjoy comes from buyer-switching costs. If it is costly
or inconvenient for a customer to switch to a new brand, the first company to gain the customer will
have an advantage. Buyers will rationally stick with the first brand they encounter that performs the
job adequately.

reference source : https://en.m.wikipedia.org/wiki/First-mover_advantage

2. What are the challenges of becoming First Movers? 

The challenges of becoming First Movers are

a. Large initial capital

As a pioneer, initial capital is one of the schools faced by first movers. It costs a lot to start up
production and business operations.As a first mover, estimating these costs is quite good, especially
given the almost ever-changing levels of market entry prices.

b. There is no reference if there is a failure

When doing something new, of course there is a tendency to fail.Unfortunately, this is a first-mover
supporter because there is no reference for dealing with that failure.
c. Easy to run into regulatory problems

When a new product or service destroys an industry, you're bound to face resistance from lobbyists,
politicians, and, of course, other businesses.Not to mention that the legal system may not be ready for
that.

reference source : https://glints.com/id/lowongan/first-mover-adalah/#.YH16ED8xXDc

3. What does a First Mover do in order to survive the market?

a. Recognizing the needs and wants of consumers To win the market, we need to understand more
about the needs and wants of consumers. Consumers should be both the end and the beginning of
the products created. When creating a new product, don't just look at how good the product was.
Also consider whether this product is what society really wants and needs.
b. Pay attention to consumer habits. Consumer habits are one of the factors that must be considered
when creating new products. The habits, traditions, or culture that develop in society greatly
influence one's needs. Do a survey and research beforehand on the habits and traditions that exist
in the surrounding community to find out the effectiveness and chances of product success.
c. Innovative and must try to think outside the box, and become a trend setter, not a follower.

reference source : https://lifestyle.kompas.com/read/2013/02/25/22414099/~Wirausaha~Tips