Please use this identifier to cite or link to this item: https://www.um.edu.mt/library/oar/handle/123456789/111772
Title: Fashionably late : a study on how the timing of a company’s entry into a market has a material impact on its performance
Authors: Borg, Jacob (2022)
Keywords: Markets
Investments
Business enterprises
Market share
Issue Date: 2022
Citation: Borg, J. (2022). Fashionably late : a study on how the timing of a company’s entry into a market has a material impact on its performance (Bachelor’s dissertation).
Abstract: Fashionably late or first to the party? First mover advantage is commonly thought to be the superior strategy to that of a follower. The first mover market entry strategy offers high potential returns for the firm and investors alike. First movers are set to enjoy a strong dominant position within the market, outselling later entrants through a strong sense of brand loyalty and a more accentuated control over the supply chain. This naturally makes them an exciting option as the potential for stock growth is greater First movers are usually more effective in scaling their business models faster and securing a dominant market position when compared to an emerging market which is formed when new players enter the sector. Through a literature review this dissertation provides further context to some of the survivability risks associated with the first mover advantage model. Though the market pioneer is the first to enter the market and is often the dominant player, this does not always mean that the firm is operating in the most efficient manner. Firms employing a follower strategy have been found to enjoy a late mover advantage, by taking a free ride on information from the first mover and waiting for consumer preferences and tastes within a market to settle. Empirical analysis using data from the PIMS database proved that although market pioneers obtain a significantly larger share of the market than that of later entrants, firms adopting a follower strategy are capable of operating at a more efficient level and provide a greater return on investment. Late movers are also susceptible to lower levels of survivability risk, this along with their greater levels of profitability prove that sometimes it is best to be fashionably late as opposed to being first.
Description: B.Com.(Melit.)
URI: https://www.um.edu.mt/library/oar/handle/123456789/111772
Appears in Collections:Dissertations - FacEma - 2022
Dissertations - FacEMABF - 2022

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