First mover advantages and disadvantages

advantage 2

Build a firm's reputation as a market leader

disadvantage 3

Early sales growth may not be as high as the company predicted if it makes mistakes with regard to the product or its marketing

advantage 4

Establish brand loyalty for the firm due to its customer's costs to switch later on

advantage 5

Firm can protect its trade secrets or technology through patents

disadvantage 1

High cost associated with creating a new product from scratch

advantage 3

Market is free of competition

disadvantage 2

Market research, product development, production, and marketing or buyer education costs

disadvantage 4

Risk that the product will fail due to market uncertainty, or that the product might not meet consumers' expectations or needs

advantage 1

the ability of an innovative company to achieve long-term competitive advantages by being the first to offer a certain product in the marketplace