Question

In many cases companies who enter a market after innovative products have been introduced can achieve long-term competitive advantages by continuing to develop a better mousetrap. For example, VisiCalcwas the first company to introduce a desktop spreadsheet program but Lotus Notes cornered a large market share when it introduced the 1-2-3 program. Today, however, Microsoft's Excel is the dominant spreadsheet software program and has continued to endure due to the popularity of the Microsoft Office Suite of products. VisiCalc possessed a ___________ advantage while Microsoft enjoyed a ___________ advantage.

Answer 1

Answer:

First mover; Late mover

Explanation:

In many cases companies who enter a market after innovative products have been introduced can achieve long-term competitive advantages by continuing to develop a better mousetrap. For example, VisiCalcwas the first company to introduce a desktop spreadsheet program but Lotus Notes cornered a large market share when it introduced the 1-2-3 program. Today, however, Microsoft's Excel is the dominant spreadsheet software program and has continued to endure due to the popularity of the Microsoft Office Suite of products. VisiCalc possessed a First Mover advantage while Microsoft enjoyed a Late Mover advantage.

First mover advantages: It is the marketing strategy of initiating any technique in the market to gain competitive advantages for being the first entrant with any new technique or technologies. It also helps in gaining brand recognition and market share.

Last mover advantages: It is another marketing strategy to gain competitive advantages by late introducing the product in the market after learning from the technique of competitors, it also helps in avoiding mistakes of rivals in the market.

In the given case, VisiCalc has enjoyed first-mover advantages as it was first one of its own type to be introduced in the market, however, Microsoft enjoyed last mover advantages as the consumer has found better and easier product than previous one, which was in the favor of Microsoft.