Student Question: In the Technology-Market matrix diagram, especially the rough sea quadrant where both technology and market are moving fast, 1. should an organization ride on both tides? 2. what is your advice for a start-up in this scenario?
My Response: A first-mover advantage can be simply defined as “a firm’s ability to be better off than its competitors as a result of being first to market in a new product category”. But note this: the greatest companies in the world are known for one thing: great products. Interestingly, all great products are known by customers. That typically comes because they are well scaled.
Extrapolate, you’re talking of first-scaler advantage, a leverageable compounding competitive advantage which comes with economies of scale as a result of being the first company to achieve scale in that category and improve marginal cost, offering products at highest value and best optimized cost. Beyond first-mover advantage, you need first-scaler advantage to thrive sustainably.
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