Document Type

Closed Project

Publication Date



Charles M. Weber

Course Title

Strategic Management of Technology

Course Number

ETM 526/626


Product design innovation begins with an idea and ends with the successful launch of a new product. By definition, First-Mover Advantage (FMA) is an individual or company who first makes advances into a new market [1]. First-mover advantage was initially talked as critical to the Internet economy, although now there is a growing criticism against it. First-mover advantage can be influential in building market share, but this may or may not translate into business success. Typically, first-movers have an advantage because they do not have to share profits until another competitor enters the market. Among other things, being first typically enables a company to establish strong brand recognition and customer loyalty before other entrants to the market arise. There are several reasons why these benefits may develop, but research has shown that being the first-mover does not always provide advantages. However, there are first-mover disadvantagestoo, where companies that enter a market later can achieve greater results to those achieved by the first-mover organization [2]. This paper will focus on the advantages and disadvantages of FMA and conclude by utilizing Porter’s Five Forces Model to measure, if the FMA theory has enabled Phoseon Technology with competitive advantage over its competitors.


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