first mover disadvantage n.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
First mover disadvantage PowerPoint Presentation
Download Presentation
First mover disadvantage

Loading in 2 Seconds...

play fullscreen
1 / 44

First mover disadvantage - PowerPoint PPT Presentation


  • 33 Views
  • Uploaded on

First-mover Disadvantage - why pioneers end up face down with arrows in their backs!

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

First mover disadvantage


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
    Presentation Transcript
    1. FIRST-MOVER DISADVANTAGE why pioneers end up face down with arrows in their backs

    2. As an angel investor, I see loads of business plans that claim substantial competitive advantage by being the first mover

    3. They claim… First to launch = marketplace winner

    4. The reality is quite different

    5. Despite urban myth, the reality is that for 98% of first movers…

    6. first to market = first to fail

    7. Why?

    8. Actually, there is no market 1

    9. Actually, there is no market 1 Here is a law of nature...

    10. Actually, there is no market 1 If there is money to be made in a market, within 24 hours, there will be 10 Chinese companies and 7 Indian companies fighting for a piece of it.

    11. Actually, there is no market 1 If you don’t see that happen

    12. Actually, there is no market 1 then there is no market

    13. Actually, there is no market 1 The reality is that most first movers are actually solutions in search of a market.

    14. It’s too expensive to be first 2

    15. It’s too expensive to be first 2 • If you have a truly novel solution, you will have to: • Make customers aware, convince them to try something brand new, and then teach them how to use it

    16. It’s too expensive to be first 2 • If you have a truly novel solution, you will have to: • Make customers aware, convince them to try something brand new, and then teach them how to use it Ka-Ching

    17. It’s too expensive to be first 2 • If you have a truly novel solution, you will have to: • Make customers aware, convince them to try something brand new, and then teach them how to use it • Create totally new-to-the-market supply & distribution chains

    18. It’s too expensive to be first 2 • If you have a truly novel solution, you will have to: • Make customers aware, convince them to try something brand new, and then teach them how to use it • Create totally new-to-the-market supply & distribution chains Ka-Ching

    19. It’s too expensive to be first 2 • If you have a truly novel solution, you will have to: • Make customers aware, convince them to try something brand new, and then teach them how to use it • Create totally new-to-the-market supply & distribution chains • Teach your own team how to make & sell something new

    20. It’s too expensive to be first 2 • If you have a truly novel solution, you will have to: • Make customers aware, convince them to try something brand new, and then teach them how to use it • Create totally new-to-the-market supply & distribution chains • Teach your own team how to make & sell something new Ka-Ching

    21. It’s too expensive to be first 2 • If you have a truly novel solution, you will have to: • Make customers aware, convince them to try something brand new, and then teach them how to use it • Create totally new-to-the-market supply & distribution chains • Teach your own team how to make & sell something new • Work with relevant regulators to create a regulatory framework / standards

    22. It’s too expensive to be first 2 • If you have a truly novel solution, you will have to: • Make customers aware, convince them to try something brand new, and then teach them how to use it • Create totally new-to-the-market supply & distribution chains • Teach your own team how to make & sell something new • Work with relevant regulators to create a regulatory framework / standards Ka-Ching

    23. Version 1 is never right 3

    24. Version 1 is never right 3 Nobody ever gets it right the first time

    25. Version 1 is never right 3 No matter how good your market research* is, all products, and especially new ones, must develop iteratively based on client & market feedback * as if any of you entrepreneurs actually did market research properly

    26. Version 1 is never right 3 • Fast followers & late entrants enjoy all the free iterative learning, that happens while the first-mover is… • distracted by providing customer support • burning it’s brand due to quality issues & feature-need mismatch

    27. Real innovators are rarely good business people 4

    28. Real innovators are rarely good business people 4 Although there are, from time to time, rare exceptions

    29. Real innovators are rarely good business people 4 an entrepreneurial team staffed for truly disruptive, ground-breaking innovation

    30. Real innovators are rarely good business people 4 is rarely a team with the right skills to cross the chasm and scale up the steep slope of the product lifecycle

    31. Real innovators are rarely good business people 4 So the first mover naively paves the way, but others jog down the path.

    32. First-movers get locked in 5

    33. First-movers get locked in 5 First movers tend to get locked in to an inertia because of the single-minded passion required to be a first-mover.

    34. First-movers get locked in 5 The lock-in happens in product platforms, branding, pricing strategies, value chain partners, or the specific requirements of lead customers, who supply cash flow at the start, but then dictate features.

    35. First-movers get locked in 5 Finally, cashflow and time management realities make it impossible to stay at the cutting edge and support Version 1

    36. First-movers get locked in 5 Whatever the case, as the market evolves, first-movers end up with the unsheddable weight of their own initial successes.

    37. First-mover opportunities are hard to capture & require immediate action 6

    38. First-mover opportunities are hard to capture & require immediate action 6 While first-movers have the opportunity to create barriers to entry, many of these protections (such as IP) are extremely weak, especially if the first-mover is a small company.

    39. First-mover opportunities are hard to capture & require immediate action 6 Similarly, as a newcomer, it is not often that a first-mover can lock-in raw materials, or suppliers, or distributors before it is too late. Value chain actors usually prefer to leave their options open in brand new markets.

    40. First-mover opportunities are hard to capture & require immediate action 6 The only realistic strategies I’ve seen is to design in switching costs. Sometimes, taking advantage of this opportunity works, but mostly, not.

    41. So, at the end of the day, as an angel investor I remain extremely sceptical about any plan that relies on first-mover advantage

    42. Actually, there is no market It’s too expensive to be first Version 1 is never right Real innovators are rarely good business people First movers get locked in First mover opportunities are hard to capture and require immediate action

    43. SHARE THIS DECK & FOLLOW ME (please-oh-please-oh-please-oh-please) stay up to date with my future slideshare posts http://www.slideshare.net/selenasol/presentations https://twitter.com/eric_tachibana http://www.linkedin.com/pub/eric-tachibana/0/33/b53

    44. CLICK HERE FOR MORE!!!!