Next-Mover Advantage

Popular business literature teaches the virtues of new enterprises running to the front of the pack in an attempt to grab market share before customers become wedded to one vendor versus another. This strategy often makes sense because the early participants build entry barriers for competitors and exit barriers for customers. But there are numerous examples of fast-followers and companies that offered superior products, services, or execution capability and outran the pioneers, leaving them with proverbial arrows in their backs. Sometimes new technology emerges that can help to create competitive advantage and tailor new innovations. Sometimes watching and learning, and then correcting or adjusting with a different strategy sets up a different path. Remember that Facebook followed MySpace, Bill Gate’s Microsoft followed Gary Kildall’s Digital Research, and Phil Knight’s Nike followed Adidas (not to mention Converse). First movers may have an advantage, but this doesn’t guarantee them the pole position forever or relieve them of the need to constantly look over their shoulder to see who is gaining on them. Even if you run to the front, it is hard to stay there. New ideas on top of great execution behind innovative leadership, especially if you couple them with a devotion to employees that creates the power of a coordinated team, can surpass the entrenched front runners.