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which was launched in 1949. At company’s products or services to foothold in the market. But as
the time, disposable diapers were that market, and its ability to research shows, second-movers,
a new innovation, and customers deliver on brand promises. Both and their followers, may sometimes
were wary of their use. Procter & these factors can have a profound be in an advantageous position.
Gamble waited until customers had impact on long-term viability and Learning from the mistakes of early
come to accept the product before business success. entrants, they frequently offer
entering the market. Moreover, they Amazon may have enjoyed superior products at lower prices.
spent nearly five years researching lasting first-mover advantage, but With the aid of skillful marketing,
and addressing each of the major that alone is insufficient to account these benefits can be leveraged to
problems with Chux and developed for its phenomenal success. Amazon offset the advantages enjoyed by
a product that was more absorbent, leverages its first-mover advantage first-movers. To become a market
had lower leakage, was more into a sustainable competitive edge; leader, a business needs either to
comfortable for the baby, offered its website is continually made be first, and impressive, or it needs
two sizes, and could be produced easier to use, it offers a range of to be better. The companies we
at a significantly lower cost. Today, complimentary products, and it remember, the Amazons and the
Forbes magazine lists Pampers as continues to drive down costs, Googles, are those that were either
one of the world’s most powerful enabling it to offer market-beating first or better—the ones we forget
brands, valued at over $8.5 billion, prices. Most notably, Amazon did are those that had no edge at all. ■
with the diapers being purchased not return a profit until 2001—the
by 25 million consumers in over 100 company spent its earlier years
countries. By contrast, Chux was building a better product. The
phased out by Johnson & Johnson foundations of success may have
in the 1970s due to shrinking sales. been laid by first-mover advantage,
but Amazon’s edge has been built on To suffer the penalty of
Securing a foothold long-term good business practice. too much haste, which is
In reality, then, while it is readily First-movers undoubtedly have a too little speed.
assumed that speed is good when natural competitive edge. Whether Plato
entering a market, gaining an edge it is a lasting impression on
Greek philosopher (429–347 BCE)
might depend less on timing than it customers, strong brand recognition,
does on appropriateness. Whether a high switching costs, control of
company is first, second, or last to scarce resources, or the advantages
market is important; but it is less of experience, that edge can help
important than the suitability of a to secure a strong, and long-term,

Jeff Bezos Born on January 12, 1964 in As with many Internet start-
Albuquerque, New Mexico, US, ups, Bezos, with just a handful
Jeff Bezos had an early love of of employees, created the new
science and computers. He business in his garage; but as
studied computer science and operations grew, they moved
electrical engineering at Princeton into a small house. The Amazon.
University, and graduated summa com site was launched officially
cum laude in 1986. on July 16, 1995. Amazon
Bezos started his career on became a public limited
Wall Street, and by 1990 had company in 1997; the company’s
become the youngest senior first year of profit was 2001.
vice-president at the investment Today, Bezos is listed by Forbes
company D. E. Shaw. Four years magazine as one of the wealthiest
later, in 1994, he quit his lucrative people in the US; and Amazon
job to open Amazon.com, the stands as one of the biggest
online book retailer—he was global success stories in the
barely 30 years old at the time. history of the Internet.