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					          Timing of entry



Early or late entry? First mover
 advantages and disadvantages
        First mover advantages

• Non-imitable production advantages based
  on learning curve, scale economies, or
  patents

• Pre-empted inputs and geographic and
  product space

• Customer and supplier switching costs
      First-mover disadvantages

• Have to make investments to create the
  market
• May have chosen wrong design in fast
  moving markets—followers can benefit
  from experience of first movers
• May have been more constrained by rules
  and regulations than followers
      Strategies for late entrants

• Benchmark and Sidestep (Jollibee)
• Find undefended niche
  (Airbus, Embraer)
  (Haier with wine coolers)
• Introduce new business concept and/or
  technology
  (Hardy’s)

				
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posted:5/8/2010
language:English
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