Close form

Should Your Strategy be Fast Follower or First Mover?

3 February 2020
Mark Friend
Digital & Tech, Structuring a Business, Building a Business

Fast Follower Versus First Mover Advantage

Most of us are familiar with the term “first mover advantage” but sometimes the “fast follower” is the winner.

A Fast Follower is a company that quickly imitates the innovations of its competitors by collecting research and data. By figuring out the innovations that seem to have the greatest potential, companies are able to weed out the “duds.” For example, many people consider Google to be the innovator of the pay per click search engine. Google was actually a Fast Follower. A firm called Overture came out with this idea two years before Google launched its superior version.

By learning what Overture was doing right, Google was able to spend more time focusing on what they could do better. This learning process is one of the main components of the Fast Follower strategy.

Fast Follower : Do It better

A similar situation occurred in the mobile phone market. Motorola pioneered the mobile phone. Samsung and Apple were late to the party but today they are market leaders in this highly competitive market sector. They found a way to do it better – they focused on making smart-phones with touch screens, great cameras, email and internet functionality.

The First Mover generally has to invest considerably in research and development. Don’t forget Research & Development Tax Credits. They have to test lots of options before bringing their new innovation to the market. Fast Followers can leverage off the research that has already been invested in by the First Mover so their time to market is faster and their research & development costs are usually lower.

That said, the First Mover will set the benchmark for their particular market. Fast Followers therefore have to work hard to offer a solution that is better in some way. The Fast Follower needs to get this right.

Consumers are generally more forgiving of First Mover errors. If a Fast Follower enters a particular market, the existing customers of the First Mover will have set their expectations and they will tend to expect the Fast Follower to meet or even exceed those standards, in order to trigger a buying decision.

While First Movers can gain a competitive edge and initial market share, there’s a lot to be said for the Fast Follower approach and learning from the mistakes of others. But, Fast Followers need to be just that – FAST.

If you are passionate about building your business and want to discover more ways to grow your business then contact Mark Friend.

The content in this blog is correct as at 03/02/2020. See terms and conditions.

Similar articles

boats
29 April 2022

Tax trap! Is your estate worth between £2 and £3 million? If so you could lose valuable allowances

We deal with many affluent clients and it is interesting how attitudes to inheritance tax can vary significantly, even between people with similar levels of wealth. Some say that they have paid taxes all their lives – on their income, asset sales, property purchases – and begrudge paying the treasury even one more pound in inheritance tax when they pass. Others feel that it will be someone else’s problem, so why should they worry. Most people are somewhere in the middle.

Probate
22 April 2022

Is Probate Difficult to do Yourself?

This is a question that gets asked a lot. The simple answer is – it depends! The preparation of papers to obtain the grant of probate or grant of representation is the responsibility of the executors if there is a valid will, or if the deceased died intestate it will be the responsibility of the…

graph
6 April 2022

Growing your business without the financials!

In order to make big profits you need to know what are the key numbers in your business. Well it’s not the cashflow, budget, profit and loss or bank balance……we are talking about non-financial figures that help the business to grow……CONVERSION RATES!

Our 3 step risk-free guarantee puts your mind at rest and keeps us on our toes!

FIND OUT MORE
byrant house at night office

Book Your Discovery Meeting

Are you hungry for success? If you run a small to medium size business and you want to grow your sales, increase profitability and pay less tax then you have come to the right place.