Review the list of first- and second-mover firms in Exhibit 9. What specific resources and capabilities do
Question:
Review the list of first- and second-mover firms in Exhibit 9. What specific resources and capabilities do you think successful first movers must possess? What specific resources and capabilities do you think successful second movers and fast followers must possess? Do you think that a firm could be both a first mover and fast follower if it wanted to be?
Exhibit 9
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Product Automated teller machines (ATMs) Ballpoint pens Reynolds (1945) Eversharp (1946) Commercial jets deHaviland (1952) Credit cards Diet soda Light beer PC operating systems Pioneer(s) DeLaRue (1967) Docutel (1969) Video games Diners Club (1950) Kirsch's No-Cal (1952) Royal Crown's Diet Rite Cola (1962) Rheingold's & Gablinger's (1968) Meister Brau Lite (1967) CP/M (1974) Magnavox's Odyssey (1972) Atari's Pong (1972) Imitators/Fast Followers Diebold (1971) IBM (1973) NCR (1974) Parker (1954) Bic (1960) Boeing (1958) Douglas (1958) Visa/Mastercard (1966) American Express (1968) Pepsi's Patio Cola (1963) Coke's Tab (1964) Diet Pepsi (1964) Diet Coke (1982) Miller Lite (1975) Natural Light (1977) Coors Light (1978) Bud Light (1982) Microsoft DOS (1981) Microsoft Windows (1985) Nintendo (1985) Sega (1989) Microsoft (1998) Comments The first movers were small entrepreneurial upstarts that faced two types of competitors: (1) larger firms with experience selling to banks and (2) the computer giants. The first movers did not survive. The pioneers disappeared when the fad first ended in the late 1940s. Parker entered 8 years later. Bic entered last and sold pens as cheap disposables. The pioneer rushed to market with a jet that crashed frequently. Boeing and Douglas (later known as McDonnel- Douglas) followed with safer, larger, and more powerful jets unsullied by tragic crashes. The first mover was undercapitalized in a business in which money is the key resource. American Express entered last with funds and name recognition from its traveler's check business. The first mover could not match the distribution advantages of Coke and Pepsi. Nor did it have the money or marketing expertise needed for massive promotional campaigns. The first movers entered 9 years before Miller and 16 years before Budweiser, but financial problems drove both out of business. Marketing and distribution determined the outcome. Costly legal battles, again requiring access to capital, were commonplace. The first mover set the early industry standard but did not upgrade for the IBM PC. Microsoft bought an imitative upgrade and became the new standard. Windows entered later and borrowed heavily from predecessors (and competitor Apple), then emerged as the leading interface. The market went from boom to bust to boom. The bust occurred when home computers seemed likely to make video games obsolete. Kids lost interest when games lacked challenge. Price competition ruled. Nintendo rekindled interest with better games and restored market order with managed competition. Microsoft entered with its Xbox when they perceived gaming to be a possible component of its wired world.
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Strategic Management Concepts And Cases
ISBN: 9781260075106
2nd Edition
Authors: Mason Carpenter, Gerry Sanders
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