First Mover Advantage

Entrepreneurship has seen major growth over the last twenty years. In 2015, there were more than 675,000 new ventures started (Entrepreneurship and the U.S. Economy). A major question being asked is whether to innovate or imitate the competition. Innovation involves the conversions of new knowledge into a new product, process or service and the putting of the new product, process, or service into actual use (Innovation and Entrepreneurship). Imitation is the opposite which is the conscious or unconscious behavior of copying others.
First we are going to investigate the advantages of innovating in the business world.
Entrepreneurs are innovators of the economy and the driver of business. Innovation creates new markets, new jobs, new products, …show more content…
The first business is Kleenex. Kleenex was the first facial tissue company. Kleenex first mover advantage was brand recognition. The company has reached the ultimate goal in marketing which is when people refer to you brand as the product. Today many people say, “I need a Kleenex” instead of, “I need a tissue.” This is known as eponym. The second business is Pandora. Pandora has seen similar benefits to the first mover advantage as Kleenex. Pandora provides is an online radio station. Since Pandora launched, there have been multiple companies to copy their business which include; Apple Music, Spotify, Amazon Music, and more. These competitors provide a better service because the application also allows the user to choose their song. However, Pandora has remained competitive because of the brand loyalty they created by being first to market. The final example is Amazon. The first mover advantage for Amazon was being able to test and perfect their processes. Amazon is so successful today because they have a very complex logistic system. Amazon is able to quickly ship products around the United States at affordable rates because of their logistics system. Kleenex, Pandora, and Amazon are all completely different businesses which signifies that the first mover advantage can benefit companies in all …show more content…
The first form of intellectual property is a patent. A patent is a government authority or license conferring a right or title for a set period, especially the sole right to exclude others from making, using, or selling an invention. A patent will provide 14-20 years of protection (General Information concerning Patents). Patents give inventors and innovators an incentive because it gives them the sole right to the invention. Companies are able to have a monopoly on the product until their patent expires. Examples of companies that have been built by acquiring a patent include Square, and GoPro. Square is a credit card processor that can be used on smartphones by connecting to the headphone jack. Square filed for thirteen patents on the same day and this has provided Square with great protection from competitors. These patents have helped Square grow into a multibillion dollar company. GoPro manufacturers cameras that attach to people to record footage of their activities in their point of view. GoPro received a patent on how the camera attaches to the person. Second form of intellectual property is trademarks. A trademark is a symbol, word, or words legally registered or established by use as representing a company or product and lasts as long as the trademark is used in commerce and defended against infringement (Trademark, Copyright or Patent?). Trademarks allow