Document Type
Closed Project
Publication Date
6-1-2017
Instructor
Charles M. Weber
Course Title
Strategic Management of Technology
Course Number
ETM 526/626
Abstract
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.
Rights
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Persistent Identifier
http://archives.pdx.edu/ds/psu/21421
Citation Details
Her, Pengsee, "Phoseon Technology Competitive Advantage Strategy: First-Mover Advantage (FMA) Theory" (2017). Engineering and Technology Management Student Projects. 13.
http://archives.pdx.edu/ds/psu/21421
Comments
This project is only available to students, staff, and faculty of Portland State University