The conditions in which being a first mover is most advantageous include Multiple Choice A) when property rights protections thwart rapid imitation of the initial move. B) when an early lead enables the first mover to reap economies of scale or move down the learning curve ahead of rivals. C) when first movers can set the technical standard for the industry. D) when pioneering helps build a firm's reputation and creates strong brand loyalty. E) All of these choices are correct.

First Mover Advantage

Read the overview below and complete the activities that follow.

When to make a strategic move is often as crucial as what move to make. Timing is especially important when first-mover advantages and disadvantages exist. Under certain conditions, being first to initiate a strategic move can have a high payoff in the form of a competitive advantage that later movers cannot dislodge. Moving first is no guarantee of success, however, since first movers also face some significant disadvantages. Indeed, there are circumstances in which it is more advantageous to be a fast follower or even a late mover. Because the timing of strategic moves can be consequential, it is important for company strategists to be aware of the nature of first-mover advantages and disadvantages and the conditions favoring each type of move.

The goal of this exercise is for you to understand when being a first mover, a fast follower, or a late mover is most advantageous.

Before completing this exercise, be sure to review Chapter 6, “Strengthening a Company’s Competitive Position;” specifically, the section entitled “Timing a Company’s Offensive and Defensive Strategic Moves.”

The conditions in which being a first mover is most advantageous include

Multiple Choice

A) when property rights protections thwart rapid imitation of the initial move.
B) when an early lead enables the first mover to reap economies of scale or move down the learning curve ahead of rivals.
C) when first movers can set the technical standard for the industry.
D) when pioneering helps build a firm's reputation and creates strong brand loyalty.
E) All of these choices are correct.