Published on August 30th, 2021
The first-mover advantage refers to an advantage gained by a company that first introduces a product or service to the market. The first-mover advantage allows a company to establish strong brand recognition and product/service loyalty before other entrants.
It is important to note that the first-mover advantage only refers to a large company that moves into a market. For example, Amazon was not the first company to sell books online. However, it was the first company to achieve significant scale in that line of business.