JAWABAN DISKUSI 3 BAHASA INGGRIS NIAGA

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?

Answer :

Being the first mover usually allows a company to build strong brand recognition and
customer loyalty before competitors enter the arena. Other benefits include additional time
to perfect the product or service and setting a market price for the new item.
First movers often get exclusive agreements with suppliers, set industry standards and
develop strong relationships with retailers. Other advantages include :
a. Brand name recognition is a major first mover advantage. Not only does it generate
loyalty among existing customers, but also attracts new customers to the company's
products, even after other companies enter the market. Brand name recognition also
positions companies to diversify their offerings and services.
b. Economies of scale, especially with regard to manufacturing or technology-based
products, are a major advantage for first movers. First movers in an industry have a
longer learning curve, which often allows them to establish more cost-effective ways of
producing or delivering products before competing with other businesses.
c. Cost shifting allows first movers to build a strong business foundation. After a customer
has purchased a first mover product, switching to a competing product may be costly.
For example, a company using the Windows operating system is unlikely to switch to
another operating system, because of the costs associated with employee retraining,
among other costs.

2. What are the challenges of becoming First Movers?

Answer :

The challenge of being first mover is that other businesses can copy and upgrade first mover
products, thereby capturing first mover market share. Also, often in the race to be the first
to market, a company may forsake key product features to expedite production. If the
market responds unfavorably, then later entrants could capitalize on the first mover's
failure to produce a product that aligns with consumer interests; and the cost to create
versus the cost to imitate is significantly disproportionate.

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

Answer :
 In my opinion, first movers in an industry are almost always followed by competitors trying
to capitalize on the success of first movers and gain market share. Most often, first movers
have established sufficient market share and a sufficiently strong customer base that they
retain a large portion of the market.

SOURCE OF ANSWER : MATERIAL SESSION 3