In the business space, much attention focuses on trailblazers, the so-called “first movers,” who launch innovative products and define new markets. Just a few months ago, we talked about why first movers win in their industry. But allow us to introduce you to another set on the block that often gets overlooked, the last movers. Unlike first movers who dive headfirst into uncharted waters, last movers wait, observe, and strategize. Entering the game late allows this set of businesses to redefine the rules and, potentially, claim victory. This is the essence of the last mover advantage.
The last mover advantage is that competitive edge gained through strategically delaying market entry. Instead of rushing to lead, companies watch the market unfold, studying the failures and successes of others (this is why we curate these stories for you at startupgraveyard.africa). This patience lets them optimize their offerings and beat competitors. Companies like Google and Facebook exemplify this concept. Neither was the first in its industry, yet both learned from their predecessors and eventually dominated.
Harnessing the Power of The Last Mover
- Observing competitors’ missteps offers valuable lessons. First movers often face challenges with flawed business models, overcomplicated technology, or ineffective marketing, because they may have rushed into the market too soon. On the other hand, last movers analyze these pitfalls and craft refined approaches, avoiding similar mistakes. Take a look at Apple. Apple wasn’t the pioneer in portable music players or smartphones. It entered these markets later but succeeded through superior design and user-friendly features that addressed gaps left by earlier players.
- First movers carry the burden of creating demand, setting supply chains, and navigating untested regulations. The last movers, however, step into markets already primed. They save resources and time, leveraging existing systems to scale faster. Netflix is a prime example. While smaller players like Blockbuster ventured into streaming early, Netflix waited until broadband technology matured and consumer demand grew. This timing allowed it to take over the market.
- Entering later provides insight into customer preferences. Instead of guessing, last movers tailor products to meet specific demands. Addressing unmet needs or frustrations helps create a competitive edge. Last movers will often adopt the latest technologies, bypassing the outdated systems used by early movers. This advantage is evident in the emergent technologies of Artificial Intelligence (AI), Natural Language Processing (NLP), Quantum Engineering, and Blockchain, where rapid innovation gives newcomers a fresh start.