Stragetic Marketing - Essay Example

The strategy of being the first producer gives many advantages but with it there are certain disadvantages. (First Mover). These companies need to keep ahead of the competition by retaining the strategy that they have. Nokia became a first mover in the developing countries by introducing cell phones that were made to withstand the harsh weather and even harsher living conditions. The innovations that this company used have now made Nokia the largest cell phone company in developing countries. (Ewing).

When a company launches a new type of product it needs to ensure that they have a competitive advantage over those who follow. Therefore, these companies need to quickly build a loyal customer base by maintaining a strong brand. (Pietersz). They are also required to build on their distribution channels and develop economies of scale to take on any competitors that enter the market. These would help the first mover remain the market leader. The first mover should also destroy all methods that the potential competition would use by closing all network channels.

Creating difficult distribution channels and economies of scale are also a method that first movers can utilize so that the competition finds it difficult to replicate. (Pietersz). Early entry companies design their strategies so they can quickly tackle the first mover. Early entry companies are often a potential threat for first movers because of their ability to gain a market share. They learn from the mistakes of the first mover so they can develop a superior marketing strategy. By following the first movers, these companies have a basic understanding of the market therefore they have the ability to learn from the mistakes of the first movers and use them to their advantage. (Walling).

Having lower research and development costs are benefits that these companies enjoy and the ability to focus on a superior product is their primary object. They can capture a larger segment of