Second-mover Strategy

Knowledge Center

What is a Second-mover Strategy? Meaning.

A Second-mover Strategy is created to benefit from (quickly) following the first-mover. Often, the second mover is actually able to capture a greater market share, despite having entered later. Compared to a first mover, this strategy has some advantages:

• Lower research and development budgets. The second-mover firm can learn from the experiences of the first mover firm, and

• Lower marketing budgets are necessary to educate the public about a new type of product.

As a result, the second-mover can use its scale and resources to focus on making a superior product or out-marketing the first mover.

Furthermore, second-movers often overwhelm the first movers by taking the first-mover’s product from their niche consumer market to a mass market. They know the importance of timing in terms of understanding when a market is ready to accept a dominant design, and they enter the market just as the dominant design is about to emerge. They polish the dominant design, and use their size to capture the market.
 

Another term for second mover firms is "Fast Follower" or also: "Fast Second". Microsoft is a classical and extremely successful example of a company that is embracing this strategy.

Forum Forum about the Second-mover Strategy. Start a new topic Share your knowledge or ask a question   🔥 NEW Second-mover Strategy Cases and Examples Hi, do you know of a famous case or an interesting example of the pros and cons of opting for a second-mover strategy? Please share it by entering a reaction. Thanks for contributing...!... 2

Expert Tips Advanced insights about the Second-mover Strategy. Here you will find professional advices by experts. The Importance of Customer Differences in Markets with Network Effects: the Limits of Scale Network Effect, Network Strategy, First Mover Advantage, Second-mover Strategy, Customer Intimacy, Market Segmentation The network effect (Metcalfe's Law) is the phenomenon that the value of a product or service increases (exponentially) w...

Information Sources Various sources of information regarding the Second-mover Strategy. Here you will find powerpoints, videos, news, etc. to use in your own lectures and workshops. How to Sustain Competitive Advantage? Business Strategy, Sustaining Competitive Advantage, Sustainable Competitive Advantage, This presentation is about the question how a competitive advantage can be sustained. The presentation begins with compe...

Research Links Automatically jump to further useful sources regarding the Second-mover Strategy. News Videos Presentations Books Academic More

Compare with: First-mover Advantage  |  Strategic Window  |  Blue Ocean Strategy  |  Competitive Environment  |  Organizational Resilience  |  Entrepreneurial Organization  |  Experience Curve Effects

Return to Management Hub: Communication & Skills  |  Marketing & Sales  |  Strategy & Innovation

More on Management  |  Return to Management Dictionary

This ends our Second-mover Strategy summary and forum.