Question

Subject ; innovation and technology maangement

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?

Answer 1

Benefits of entering a market early:

Entering the market early can allow firm to obtain narket share with limited competetion.

The company has the opertunity to build brand recognition and loyalty from customers.

In addition,the company can gain experience and make changes to theirvalue chain activities as needed,therefore,building a stronger product or service.

Brand name recognition is the main first-mover advantage..Not only does it engender loyality among existing customers,but it also draws new customers to a company's product ,even after the companies have entered the market.

Benefits of entering a market late:

In this the followers can learn from from poineers mistakes,see whether there is a market worth entering and judge consumers tastes.

The late mover has strategic advantages as it was proved by airline companies called as JetBlue.

They have lover cost associated with informing customers about the product or service .Companies can also gain knowledge about the market and about product or service performance.