First Mover Advantage

The video discusses the concept of first movers in a market, highlighting both advantages and disadvantages. First movers can establish strong buyer relationships, set industry standards, gain brand recognition, achieve economies of scale, and create switching costs. However, they also face risks such as untested ideas and competitors exploiting their efforts. The video provides a comprehensive overview of how first movers operate within a competitive business environment.

Explain the concept of switching costs and how it affects customer loyalty for first movers.

What are the potential disadvantages of being a first mover?