First & second Movers in

International Market industry

1st & 2nd movers in International Market industry 2

Contents
INTRODUCTION..................................................................................................................................................2
First movers in International Market Entry: Advantages & Disadvantages........................................................2
Second Movers in International Market Entry: Advantages & Disadvantages...................................................4
References:........................................................................................................................................................5
1st & 2nd movers in International Market industry 3

Q: What are the 1st & 2nd movers in International Market industry? Giving examples and discuss
their Advantages & Disadvantages?

INTRODUCTION
International marketing involves the presentation of products and services to global markets, all as a first or
second mover entry strategy. A first mover, also known as international marketing is an organization that
introduces another product or service into the marketplace in this way to gain an advantage or economies
of scale in the market environment. However, some organizations may take advantage of the danger of
being the first to introduce an item and then create a new market for it.

To introduce an item and then create an "identical" item based on similar principles. This type of
Organizations are called secondary because they use methods that defend the interests of the whole.

The organizations are called secondary because they use methods that advocate for the interests of the
whole. How the way one enters into the marketing environment can therefore explain the various
difficulties and advantages according to the type of project, the project plan and the target market.
Therefore, this report includes an important discussion on the advantages and obstacles of first and second
internationalization international trade after market entry.

1st movers in International Market Entry: Advantages &

Disadvantages

Pioneers benefit from first mover advantage (FMA), which is the advantage a firm or organization enjoys
when it is the first to enter a new market. Monetary revenues are often attributed to first entry, but
(Robinson, 1994) the benefits in terms of the permanence of the new market or the market share it may
gain may also be zero. The term "first-mover advantage" may suggest that early entry may be attractive, but
that market leadership may have detrimental consequences for pioneering firms. Therefore, in any market
environment, first-mover advantage depends entirely on the dynamics of the market and the characteristics
of the market leader. In conclusion, some analysts believe that newcomers will be more successful than
pioneers.
1st & 2nd movers in International Market industry 4

A rational and competitive firm (Mascarenhas, 1992) must first consider the characteristics of the market to
determine the best time to enter it. Thus, the first mover's ability to control technology in world trade
depends on the characteristics of the market and the size of the firm. For example, the leading firm must
take advantage of the buyer's cost exchange marker, which helps it to lock in costs, while the good firm
must expend significant resources to attract the buyer's attention for this purpose.

Predetermined market value (Chen, 1999) is an important characteristic of the lead firm's basic entrant. In
this capacity, the former acquires dominant assets, including raw material, a suitable geographic area and a
possible geographic location perceived by the customer. However, possession of these assets does not
necessarily favor the first mover. In addition, the first mover is described by the definition of a dominant
plan or a project plan that addresses the buyer's problem with minimal effort. For example, Apple, which
prides itself on buyer engagement and customer security, revolutionized the mobile phone landscape with
the first launch of the iPhone in 2007. Since then, HTC became the first Android assembler in 2008, paving
the way for subsequent companies to follow. It is speculated that while Apple's iOS is holding at 88% and
91% respectively compared to Google's Android operating system, Android is still losing around 112 million
customers to Apple's 30 million. Apple's earlier entry into the market helped it maintain its unique position
as number one in the global mobile phone market.

While the former may thrive due to high market prices compared to their competitors, the latter may thrive
beyond the vulnerability of the companies they operate and their objectives. (Frynas, 2006) For example,
Coca-Cola became the largest brand in 1886, overtaking the first soft drink, Vernors and Dr Pepper, in 1881.
However, Coca-Cola continued to build a respectable brand, establishing long-term relationships with
customers and increasing trust and brand awareness. Coca-Cola is a real model, with more than 200 brands
and products in over 200 countries and territories around the world. By the time Pepsi became popular,
thirteen years after its development, Coca-Cola had built a solid business with sales of more than a million
gallons each.

By contrast, according to some academics, (Mueller, 1997) many leading organizations or companies lack
the core values needed to guide their creativity and become market pioneers. This disadvantage may mean
that second-tier organizations that are now established companies no longer enjoy the significant
advantages that were originally "intended" for pioneering companies. An apt example is the explosion of
Uber in the transport market in 2009. In its early days, (Mylovanov, 2005) Sidecar was the pioneer in shared
mobility, and as resource constraints led to its abandonment, Uber leveraged its position to become the
best and largest shared mobility company. This is also the assumption of some analysts who believe that
1st & 2nd movers in International Market industry 5

first-movers' cycles and products may be biased by lower customer costs and high productivity, causing first
movers to lose the advantage of latent pioneers.

2nd Movers in International Market Entry: Advantages &

Disadvantages

Second mover advantage (Hoppe, 2000)occurs when a company that emulates the first mover is able to gain
a larger market share despite being a late entrant. 1994 saw the creation of Amazon.com as an Internet
bookstore by Jeff Bezos, which was launched in 1995. The product range immediately expanded to include
VHS, DVDs, CDs, software, computer games, furniture, toys and many other items. What many people don't
know is that Book Stacks Unlimited, or books.com, was founded in 1991 and began operations in 1992.
Founded by Charles M. Stark, it is considered the first web-based bookstore in history, (Cleff, 2014) but
Bezos and Amazon were much more successful because Bezos had the ability to realize that internet usage
was growing by 2000% every year and therefore also had the ability to market Amazon. Since then, Amazon
has dominated the online bookstore sector and expanded into other markets. Book Stacks was offered to
Barnes & Noble again in 1996.

The second mover took advantage (Hoppe H. a.‐G., 2001) of this attention to tell the same customer that it
existed in the market and that it was a real alternative, unlike the first intermediary. IBM realized the role of
computers in business. They needed visibility, a market and customers. Apple entered the market and won,
and how. Through its famous "Big Brother" advertising campaign during the Super Bowl, Apple took direct
aim at IBM and broke into the personal computer market under the IBM banner.

A large number of pioneers develop technologies that become the main purpose to enter into the newly
formed market (Shinkai, 2000). They invest resources in research, development and optimization of
technologies. Their challenge is to devote resources to technologies that may or may not be recognized by
the market and are unattainable. All the second mover has to do is stop and watch. They move forward
without commitment, sit in the optimization cycle to get closer to market acceptance and then limp along
(and perhaps do a little better).

This is the most common form of early market disruption and we have countless examples. The most
famous is probably the one that has ended up on this page, Google. Google was born after Alta Vista, when
Alta Vista was trying to offer customers www sites that would allow them to search in plain language.
Google discovered how Alta Vista worked, optimized it and introduced another element of web search,
driven by a superior algorithm. Like everything else, there are potential dangers and vulnerabilities. As a new
1st & 2nd movers in International Market industry 6

entrant to the market, you have no brand loyalty. If you don't do proper market research, you are likely to
try to market generic perishable products. A good second step is to create a programmed that may alienate
customers, assuming that the extra touch is unnecessary rather than necessary. The second mover
assumption can also be detrimental if the timing of the market is unwise, leaving the product to suffer the
negative effects of questionable demand issues.

References:

Chen, H. a. (1999). Product entry in international markets: the effect of country‐of‐origin on first‐mover
advantage. Journal of product & brand management.
Cleff, T. a. (2014). Are there any first and second mover advantages for eco-pioneers? Lead market strategies
for environmental innovation. Interdisciplinary Management Research, 10, 164-189.
Frynas, J. M. (2006). First mover advantages in international business and firm‐specific political resources.
Strategic Management Journal, 27(4),, 321-345.
Hoppe, H. (2000). Second-mover advantages in the strategic adoption of new technology under uncertainty.
International journal of industrial organization, 18(2), 315-338.
1st & 2nd movers in International Market industry 7

Hoppe, H. a.‐G. (2001). Second‐mover advantages in dynamic quality competition. Journal of Economics &
Management Strategy, 10(3), 419-433.
Mascarenhas, B. (1992). Research notes and communications first‐mover effects in multiple dynamic
markets. Strategic Management Journal, 13(3).
Mueller, D. (1997). First-mover advantages and path dependence. . International Journal of Industrial
Organization,, 827-850.
Mylovanov, T. (2005). First-mover disadvantage . Discussion Paper.
Robinson, W. K. (1994). First-mover advantages from pioneering new markets: A survey of empirical
evidence. Review of Industrial Organization, 9(1), 1-23.
Shinkai, T. (2000). Second mover disadvantages in a three-player Stackelberg game with private information.
. Journal of Economic Theory, 90(2),, 293-304.