First Mover Advantage

First mover advantage can be defined as the competitive edge gained by firms entering the market earlier than competitors. The timing of strategic moves may be critical for success as a result of the positive advantages accruing to first movers. Being first has a significant payoff when: It enhances the firm's image and reputation with buyers; early entry can tie up key raw material sources, new technologies, distribution channels, and the like, so as to shift the cost boundaries of a business or industry; first time operators build customer loyalty which is hard to dislodge; it constitutes a preemptive strike which is difficult to copy.