Review the list of first- and second-mover firms in Exhibit 9. What specific resources and capabilities do
Question:
Review the list of first- and second-mover firms in Exhibit 9. What specific resources and capabilities do you think successful first movers must possess? What specific resources and capabilities do you think successful second movers and fast followers must possess? Do you think that a firm could be both a first mover and fast follower if it wanted to be?
Exhibit 9
Transcribed Image Text:
Product Automated teller machines (ATMs) Ballpoint pens Reynolds (1945) Eversharp (1946) Commercial jets deHaviland (1952) Credit cards Diet soda Light beer PC operating systems Pioneer(s) DeLaRue (1967) Docutel (1969) Video games Diners Club (1950) Kirsch's No-Cal (1952) Royal Crown's Diet Rite Cola (1962) Rheingold's & Gablinger's (1968) Meister Brau Lite (1967) CP/M (1974) Magnavox's Odyssey (1972) Atari's Pong (1972) Imitators/Fast Followers Diebold (1971) IBM (1973) NCR (1974) Parker (1954) Bic (1960) Boeing (1958) Douglas (1958) Visa/Mastercard (1966) American Express (1968) Pepsi's Patio Cola (1963) Coke's Tab (1964) Diet Pepsi (1964) Diet Coke (1982) Miller Lite (1975) Natural Light (1977) Coors Light (1978) Bud Light (1982) Microsoft DOS (1981) Microsoft Windows (1985) Nintendo (1985) Sega (1989) Microsoft (1998) Comments The first movers were small entrepreneurial upstarts that faced two types of competitors: (1) larger firms with experience selling to banks and (2) the computer giants. The first movers did not survive. The pioneers disappeared when the fad first ended in the late 1940s. Parker entered 8 years later. Bic entered last and sold pens as cheap disposables. The pioneer rushed to market with a jet that crashed frequently. Boeing and Douglas (later known as McDonnel- Douglas) followed with safer, larger, and more powerful jets unsullied by tragic crashes. The first mover was undercapitalized in a business in which money is the key resource. American Express entered last with funds and name recognition from its traveler's check business. The first mover could not match the distribution advantages of Coke and Pepsi. Nor did it have the money or marketing expertise needed for massive promotional campaigns. The first movers entered 9 years before Miller and 16 years before Budweiser, but financial problems drove both out of business. Marketing and distribution determined the outcome. Costly legal battles, again requiring access to capital, were commonplace. The first mover set the early industry standard but did not upgrade for the IBM PC. Microsoft bought an imitative upgrade and became the new standard. Windows entered later and borrowed heavily from predecessors (and competitor Apple), then emerged as the leading interface. The market went from boom to bust to boom. The bust occurred when home computers seemed likely to make video games obsolete. Kids lost interest when games lacked challenge. Price competition ruled. Nintendo rekindled interest with better games and restored market order with managed competition. Microsoft entered with its Xbox when they perceived gaming to be a possible component of its wired world.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 0% (1 review)
Certainly Lets delve into the specific resources and capabilities that successful first movers and second moversfast followers must possess Well also ...View the full answer
Answered By
Krishnavendra Y
I am a self motivated financial professional knowledgeable in; preparation of financial reports, reconciling and managing accounts, maintaining cash flows, budgets, among other financial reports. I possess strong analytical skills with high attention to detail and accuracy. I am able to act quickly and effectively when dealing with challenging situations. I have the ability to form positive relationships with colleagues and I believe that team work is great key to performance. I always deliver quality, detailed, original (0% plagiarism), well-researched and critically analyzed papers.
5.00+
4+ Reviews
10+ Question Solved
Related Book For
Strategic Management Concepts And Cases
ISBN: 9781260075106
2nd Edition
Authors: Mason Carpenter, Gerry Sanders
Question Posted:
Students also viewed these Business questions
-
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
-
1. How strong are the competitive forces confronting J. Crew in the market for specialty retail? Do a [Michael Porter] five-forces analysis to support your answer. (see chapter 3 in the textfor...
-
Please help with the discusin questions ! I give thumbs up Case #1: Hailing a New Era: Haier in Japan As one of the most valuable brands in China, Haier designs,manufactures, and sells various home...
-
Pty is in the process of developing several new products. One of them is innovative gymnastic equipment. The estimated labour time for the first unit is 12 hours but a learning curve of 80% is...
-
Is it possible to have an iron-carbon alloy for which the mass fractions of total cementite and proeutectoid ferrite are 0.057 and 0.36, respectively? Why or why not?
-
Which of the following accounting issues should mostly likely be considered a character warning flag in credit analysis? A. Expensing items immediately B. Changing auditors infrequently C....
-
Describe why healthcare decisions can change as circumstances change.
-
Katie Davis is contemplating paying five years rent in advance. Her annual rent is $12,600. Calculate the single sum that would have to be paid now for the advance rent. Assume compound interest of 8...
-
The management of Elite Limited is struggling to understand changes in their financial performance and the trends emerging within their accounting data. Hence, the company would like to know about...
-
Some firms manage disruptive strategy threats by investing in the firms that bring them to market, so that if the threat turns out to be wildly successful it can still benefit from it financially. Is...
-
If you were the CEO of Napster (which started out as Roxio in the opening vignette), what material from this chapter would be most relevant to you? How would this material help you to formulate a...
-
In the following table, we repeat the salary data in Data Set II from Example 3.1. a. Use Definitions 3.4 and 3.6 on pages 95 and 105, respectively, to obtain the sample mean and sample standard...
-
Using the z-scores table for the standard Normal distribution In finance, the acronym VaR stands for "value at risk". JP Morgan introduced value at risk in the 1980s as a way to answer a common...
-
Analyze the major investment projects undertaken in the last five years by Amazon. Provide relevant details (cost and brief description of the investment, type of securities issued, etc.). Evaluate...
-
Your firm is considering a three-year project that will save the firm $40,000 per year in labor costs. The equipment to undertake this project will cost $100,000, will last three years and will be...
-
Assume no purchases or returns are made in the exercise given below.At the beginning of a 31-day billing period, Sandra Lazzaro has an unpaid balance of $790 on her credit card. Three days before the...
-
Your client, Quyen, is 25 years old, single and a non-smoker. She has just received a quote from an insurance company for $1 million in term life insurance. The annual premium would be $1,345....
-
For the data of Problem 70, assume that the charge q on the drop is given by q = ne, where n is an integer and e is the elementary charge. (a) Find n for each given value of q. (b) Do a linear...
-
If you want to solve a minimization problem by applying the geometric method to the dual problem, how many variables and problem constraints must be in the original problem?
-
If change projects seem to stall and fail to progress, which of the eight steps of successful change have not received enough attention?
-
If change projects seem to stall and fail to progress, which of the eight steps of successful change have not received enough attention?
-
When using the 7 S model to create alignment, why do managers need to make sure all the Ss align with the organizations strategy? What problems follow misalignment? What tools do managers have to...
-
Using data from the American market, or Korean market, to answer the questions below. Question 1A: Identify a market (or market segment) that is in the mature stage of the product life cycle. Provide...
-
Please, I need help to come up with the Business Plan regarding the Marketing Plan below: This product is called Guardian Angel Cybersecurity: We are early stage startup Focussed on the mobile...
-
We are working on a project about digital marketing and AI, for example (digital marketing and chat GPT). I want your help with Photo editing/organizing and Video Recognition with AI - how AI...
Study smarter with the SolutionInn App