It is no longer an advantage to be the first mover. In fact, it no longer matters, as the success of several late movers suggests. IBM has demonstrated it in mainframes, while others like JVC in video recorders, Canon when it comes to cameras, and P&G in diapers. Today, it pays to be a late entrant, or more appropriately, a fast second mover.
Did you know that Amazon was not the first online book retailing company in the world and that the idea of online book retailing was pioneered by someone else? Also, did you know that it was not Charles Schwab who pioneered the concept of Internet or online trading? It sounds strange, but the truth is that many of the firms which are successful today are not the ones which pioneered the ideas which became hugely successful later. This raises a question: Do you really need to be an innovator to be successful? Also, does it pay to be a first mover? Probably not. To put it more bluntly, an imitator has a much higher chance of success than the original inventor. And it’s a myth that the first mover always has an edge over the late entrants.
The book Fast Second attempts to bust several myths regarding product innovation and the first mover’s advantage, and offers insights into the strategies which could help even a late entrant to pip the early mover to the post. Through a host of practical and interesting examples, the book demonstrates that a company, particularly a big one, without spending time and effort (although they have financial muscle, they lack the mindset and flexibility a small firm enjoys) on product innovation, could still dominate the market. |
