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first-mover advantage


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  • In business, economics, or marketing, first-mover advantage, or FMA, is the advantage gained by the initial ("first-moving") significant occupant of a market segment.
    ----Without all the business-speak:
    "Folgers's market share is much higher in San Francisco because this is where the brand was introduced way back in 1872. Similarly, Maxwell House does much better in the Northeast (the brand was launched in Nashville in 1892), where the Folgers market share is the smallest.

    Furthermore, this finding is incredibly robust. Leading brands in numerous product categories have the largest market share in markets where they were first introduced--even though in many cases these brands were introduced over 100 years ago. So sometimes just being first in a particular market allows you to dominate that market for decades and decades, even as new entrants come along."

    February 26, 2015