Brand positioning and segmentation strategy for the first mover will help them define market expectations for product just the way they want it. They create primary demand and this could also serve as advantage for second movers or third movers, because once demand is created, more products would be needed. Technological leadership on the other hand could be protected from next level movers by means of patent protection. Value chain strategies are part of first mover advantages as the company could shape the way that it wants its product to be sourced or distributed. However, second and third movers could learn their strategies from the first mover and mimic them.
Establishing higher switching costs would be helpful for the first mover.
Economies of scale is something that is more of an advantage for any internationalizing firm and need not necessarily be first mover advantage.
Superior customer value can be a first mover advantage. However, these can also be second and third mover advantage.
Financial, customer, internal business processes and learning are the strategic components of the balanced score card. In terms of the financial measure, Arthur’s way is focused on cost saving and hence could be said to have planned well. However, it did not do well financially. In terms of the customer, Arthur did not study customer’s needs better. In terms of the internal business processes, it could be said that Arthur has indeed planned for an optimized way to conduct business.
In ripple marketing, a seed is planted, and slowly the idea spreads across to consumers. Ripples have to be recognized by marketers in order to stay abreast of their own product marketing. However, it does not mean that marketers need not start their own ripples.
In fact, in more current marketing environments, marketers create ripple effects for products and services as a form of their own marketing. The ripple effect spreads across consumer segments and hence this creates more exposure for the brand. An important element to understand here is that the same ripple effect which could be positive for a brand could be created intentionally or unintentionally. When created unintentionally if the effect is adverse for the brand, then marketers will have to act on it.