Question

Many firm choose to enter the market early to get a number of advantages including the opportunity to do monopoly of the business. What are some benefits of entering market early? There are opportunities to enter the market late. Why a firm may choose to enter into a market late?q

Answer 1

product/business model depends upon a substantial customer base or substantial investments to overcome the barriers to entry, then late movers will face difficulties in competing against the already set up first movers. In markets with little barriers to entry, where products and business models do not depend upon a great, loyal customer base, I'd say that late movers have an advantage over first movers since they can attain market share relatively easy while having the opportunity to learn from the first mover's mistakes.

In order to resolve the obstacles to entry, the product / business model relies on a large user base or significant investments, then late movers will face challenges competing against the first movers already set up. late movers have an advantage over first movers in markets with limited barriers to entry, where products and business models do not rely on a broad, committed customer base, because they can gain market share reasonably quickly while having the ability to benefit from the errors of the first mover