Strategic Management

Define and explain “first mover advantages.”

Define: A first-mover advantage can be simply defined as a firm's ability to be better off than its competitors as a result of being first to market in a new product category. ... But even when a company cannot build a durable first-mover advantage, it may obtain some benefits from early entry.
Explain: First-mover advantage only refers to a significant company that moves into a market, not just any company. For example, even though Amazon.com was not the first entity to sell books on the Internet, it was the first significant company to do so (many people think Amazon was the first – it wasn't!).