Strategy Management-Munish PPT

7/31/2019 Strategy Management-Munish PPT

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Munish Gupta

Roll. No. 79


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Introduction

Timing of entry can be very important.

Categories as per entry timings are defined

as follows: First movers are the first entrants to sell in a new

product or service category (pioneers)

Early followers are early to market but not first.

Late entrants do not enter the market until theproduct begins to penetrate the mass market orlater.


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First-Mover Advantages

Technological Leadership

P&G for disposable diapers in

US market

Preemption of scarce assets

Wal-Mart locate discount stores in small towns.


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First-Mover Advantages

Helps build firms image and reputation

Early commitments to raw material suppliers,

new technologies, & distribution channels canproduce cost advantage

Loyalty of first time buyers is high


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First-Mover Disadvantages

High research and development expenses

Undeveloped supply and distribution channels

Uncertainty of customer requirements

Resolution of tech/market uncertainty


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Advantages of second movers

Reduction in demand uncertainty

Market research to improve satisfying customer needs

Learn from the first movers successes and shortcomings

Gaining time for R&D to develop a superior product

Dont have to educate consumers


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SamsungSamsung waits for others to develop winning technology,

then it improves on it, and pumps out a greater variety

of finished products faster than anyone else.

AltaVistagave the world its first search engine over internet andtoday it is dominated by Google. Anyone hardly remembersAltavista!

Myspace vs FacebookMyspace existed long before Facebook. Myspace pages lookedcluttered and garish.


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Disadvantages of second movers

First mover inertia

If significant learning curve through moving first,

then giving up competitive advantage

Loss of the best scarce resources because of lateentry.


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Late Entry Advantages

Free RideRefining becomes easy

Market Certainty

Learn from their mistakes

Easily Funded


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Examples of late Entrants

ISB was established in 2001 and it has excelled and put itself in theleague of best B schools like IIMs, NITIE , XL

Honda coming to US markets in presence of brands like HarleyDavidson

Kodak, for example, was labelled a very late mover in the inkjetprinter market - to enter many years after numerous other firms had

established strong footholds in the market.


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Late Movers Disadvantages

Very Competitive Market

Already defined standards Price and

margins

New rules and regulations act as barrier toenter the industry


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Thank You

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Strategy Management-Munish PPT