1. There is a very interesting phenomenon which relates to the product cost. In a
competitive market first mover advantage relates directly to cost of the product.
As shown below high involvement products are considered to be high on cost and hence
offer first mover advantage in a competitive market.
High involvement products usually have a very complex value matrix offered to the
customers. Having said that we need to understand why high involvement products
have first mover advantage?
As shown below complex value matrix is something which is difficult to replicate
immediately. From the perspective of a manufacturer to make customer understand
this complex value matrix is very important.
To have sustainable competitive position in the market CVM should be regularly worked
out from the perspective of a manufacturer and hence it will help in stretching first
mover advantage.
2. To summarize,
Cost of the product is directly promotional to first mover advantage which depends on
CVM of a particular product.