Monopoly Board Game The Classic Edition

Running head: DEFINITIONS
DEFINITIONS
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DEFINITIONS1
First Mover Advantage
The first mover advantage can be essentially described as a marketing or strategic move which is
undertaken by a new enterprise to seek an advantage in a new market. It ultimately leads in an
insurmountable advantage due to the risk and opportunity the firm undertook to shift its
functioning into the market. The idea of the word is similar to that of the proverb or popular
saying that `the early bird gets the worm`. Later on the term was then used in the context of
marketing and considerable market share by the various enterprises. In this definition, it
becomes relatively crucial to mention that the first mover advantage plainly refers to the first
`critical` company which has been able to move into a market and not the first company
(Adekola and Sergi 2016). For instance, the example of Amazon might be useful here. Although
there were several sellers of books online, the Amazon.com can be mentioned to be the first
`critical` company to have moved into the online book market.
Explanation and Application
The reason why the first mover advantage is considered good is because; it is instrumental in
building market share and defeating the competitors. However, the move needs to justify the risk
which the company takes. Very often various enterprises tend to enter a market to gain a
monopoly status and attain higher margins (Burns and Dewhurst 2016). The term first mover
refers to the person or entity making the first move and additionally the advantage refers to the
gains by the entity in the due course of taking the first move.
In the case of this First Mover Advantage, a strong business acumen and significant market
research are the key essentials to be possessed by any business when they intend to enter the
market. In consideration of this, firms which are financially and operationally stable, have the
ability to meet the demands of the consumers and additionally, have the capability to build a
strong brand image are the ones which can easily gain the First Mover Advantage. A popular
company which aced this term can be mentioned to be Apple with its iPhones and wireless ear
pods as well.