First to Market

Posted in Marketing and Strategy Terms, Total Reads: 457
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Definition: First to Market

First to Market refers to any market that is being created for the very first time through some innovative product.


The first to market offers first mover advantage to firm’s & sometimes get huge returns through high profit margins & may create monopoly situation.


It is believed that if you enter first, you are a pioneer. You gain competitive advantage over others by catching customers, locking in suppliers & resources. But it is also true that moving first into the market cannot guarantee you the success. The decision to enter into market first is not an easy one to take. It depends on how hostile is the external environment is & is there any possibility to first learn from others before launching your own products.


Advantages of Moving first into a market:

• Technological Leadership

• Preemption of Scarce assets

• No Switching costs


Procter & Gamble can be one of the example of first to market. The company’s technology leadership helped push their product (disposable diapers) into the US market. PnG used a learning-based preemption to invest in low-priced European synthetic fiber which was used to make cheaper diapers at more profitable price.

 

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