42 Proven Strategies to Turn Second-Mover Status Into Dominance

How to Create the Second-Mover Advantage to Gain Unparalleled Competitive Edge & Positioning

In this article, you will learn the following

-100+ Notable examples of Second Movers who overtook the Pioneers

-42 Tips How To Create A Second-Mover Advantage To Be A Highly Successful Business

-30 Reasons Why Is It Better to Be A Second Mover - How the Second Mover Advantage Works in Business - How the late entrants can be more successful than their pioneering competitors [this point can also fall under disadvantages of 1st movers]

Theoretically, if you are disrupting a business or market with completely game-changing features and value-additions - you should have an envious success story.

But this is more academic than real – because as a game changer, you must reinvent everything – from manufacturing, production, service, marketing, sales, revenue model, business model, profitability model, supply-chain development, getting & retaining the right talent, raising cash, managing operations, etc. etc.

There is a certain mystique in being the first mover – but it is often more challenging and risk-prone than guaranteeing that the company will enjoy phenomenal and sustainable success because of being the pioneer or disrupter.

Being the first to enter a completely new market OR a unique niche – does offer a few significant advantages – but you would also discover that history is filled with second movers who surpassed their pioneering rivals – I have taken a few examples from a seemingly long list and have given in this article.

These examples demonstrate that while being first can be advantageous, it's not a guarantee of long-term success – neither it guarantee dominance.

2nd movers often can learn from their predecessors' mistakes, innovate, and ultimately capture a larger market share.

Data shows only about 20% of pioneers were more successful than late movers.

Pioneering and late-moving companies both have their unique distinct advantages.

In some industries -under some circumstances - it’s much better to enter late.

Smart leadership decision-making means knowing whether your situation favors pioneering or entering the market late.

This article will compare the advantages & the disadvantages of both first movers as well as later entrants.  

We will also dive deep into how as a 2nd mover or late entrant you can optimize and reap the advantages and benefits of being a 2nd mover and create an unparalleled success story. [How a first mover can succeed is my next article].

100+ Notable examples of Second Movers who overtook the Pioneers

1.     Technology and Software

     I.         1st mover Jasper (expensive), second mover ChatGPT (free) & Google Gemini Quora POE, Facebook Meta

2.     Laptop & Personal computers examples

     I.         While The Kenbak-1 is the world's first personal computer designed and invented by John Blankenbaker of Kenbak Corporation in 1970 - On August 12, 1981, IBM introduced the IBM Personal Computer [This wasn't the first PC, but it did create the standards that in many ways have dominated personal computing for most of the past 40 years, including an open architecture, an Intel architecture processor, and a Microsoft operating system]

    II.         Apple Computer 1 (Apple-1), later known predominantly as the Apple I (written with a Roman numeral), is an 8-bit motherboard-only personal computer designed by Steve Wozniak and released by the Apple Computer Company (now Apple Inc.) in 1976

  III.         Lenovo has been the global market leader for personal computers since 2013, followed by HP and Dell

 IV.         Microsoft vs. Apple - Microsoft's Windows operating system eventually captured a much larger market share.

3.     Examples from Retail

     I.         Amazon vs. Traditional Bookstores: Brick-and-mortar bookstores were the original retail model, but Amazon's convenience, selection, and competitive pricing transformed book buying.

    II.         Walmart vs. Local Grocery Stores: Independent grocery stores were the first, but Walmart's efficient supply chain, low prices, and one-stop shopping concept revolutionized retail.

  III.         Zara vs. Traditional Fashion Retailers: The fashion industry relied on seasonal collections, but Zara's fast-fashion model with frequent product turnover and responsiveness to trends disrupted the market.

 IV.         eBay, the world's largest online auction site withstood Amazon's efforts to encroach on their market with their campaign, Amazon Auction and Flipkart was inspired by the success of Amazon in the USA. As the government regulations didn’t allow a foreign entity to set up e-commerce in India, Flipkart got the first mover advantage even though they were copying Amazon - Flipkart was acquired by Walmart for $16 Billion in 2018. Oyo (started as Airbnb), Ola (from Uber

   V.         Amazon - they have been competing directly with each other

 VI.         The ulcer-relief drug Zantac is a classic case study of a successful, late-entering product. Zantac was superior to the pioneer ulcer drug in important ways—it had fewer side effects,

VII.         Kindle [ parent company Amazon] - beat Barnes & Noble by introducing e-reading in 2007

VIII.         Walmart vs. Kmart: Kmart was the early discount retail giant, but Walmart's efficient supply chain and pricing strategy allowed it to become the world's largest retailer.

 IX.         Amazon vs. Barnes & Noble: Barnes & Noble dominated the bookselling market, but Amazon's online platform and vast product range transformed the industry.

4.     Examples from diversified businesses & industries

     I.         In 2013 Google launched Google Glass, the head-mounted wearable computer - In 2015, they discontinued the product.

    II.         Did the SmartGlass technology die – The reverse did happen - we have Ray-Ban, Amazon, Snapchat, Bose, Vuzix, and many other companies with their variant of Smart Glasses today - who are careful not to repeat Google’s mistakes.

  III.         Boeing did not pioneer modern jet travel – but still became one of the leaders in their field

 IV.                 Uber vs. Taxi Industry: The traditional taxi industry was the first in ride-hailing, but Uber's efficient app, driver ratings, and surge pricing disrupted the market.

VII.         Southwest Airlines vs. Traditional Airlines: Traditional airlines were the first, but Southwest's low-cost, point-to-point model redefined air travel.

VIII.         FedEx vs. USPS: The United States Postal Service was the original delivery service, but FedEx's focus on speed and reliability created a new industry standard.

 IX.         Microsoft vs. Xerox: Xerox PARC developed many of the foundational concepts of modern computing, but Microsoft's Windows operating system became the industry standard.

   X.         Netflix vs. Blockbuster: Blockbuster was the dominant video rental chain, but Netflix's subscription model and streaming technology disrupted the industry.

 XI.         Tesla vs. Traditional Automakers: While electric vehicles have been around for decades, Tesla's innovation and marketing have transformed the industry.

XII.         Inditex (Zara) vs. Traditional Fashion: Inditex revolutionized the fashion industry with its fast-fashion model, quick turnaround times, and trend-driven collections.

XIII.         Airbnb vs. Traditional Hospitality: Hotels have been around for centuries, but Airbnb's peer-to-peer platform, global reach, and unique accommodations redefined travel.

XIV.         Apple iPhone vs. Blackberry: Blackberry was the king of smartphones for professionals, but Apple's intuitive touchscreen interface and app ecosystem redefined the industry.

XV.         YouTube vs. Traditional Television: While television has been a dominant form of entertainment, YouTube's user-generated content, viral videos, and video-sharing capabilities have created a new media landscape.

XVI.         Spotify vs. Traditional Music Industry: Spotify's streaming model and vast music library challenged the traditional music industry's reliance on physical sales and radio play.

XVII.         Coca-Cola vs. Pepsi-Cola: While Coca-Cola was the first, Pepsi's aggressive marketing and product innovation have made it a formidable competitor.

XVIII.         Toyota vs. Ford: Ford pioneered mass production, but Toyota's focus on quality, efficiency, and reliability transformed the automotive industry.

XIX.         Nintendo vs. Atari: Atari was the first major video game console, but Nintendo's innovative gaming concepts and family-friendly image led to its success.

XX.         Samsung vs. Sony: Sony was a pioneer in consumer electronics, but Samsung's aggressive R&D and marketing strategies have made it a global leader.

XXI.         Ikea vs. Traditional Furniture Retailers: While traditional furniture stores were the first, Ikea's focus on affordable, self-assembly furniture disrupted the industry.

5.     Fintech Companies vs. Traditional Banks

     I.         Fintech startups like PayPal, Venmo, and Robinhood are disrupting traditional banking with innovative digital solutions and lower fees.

    II.         PayPal vs. Early Online Payment Systems: While online payments existed before, PayPal's user-friendly interface, security, and wide acceptance made it a global standard.

  III.         Ant Group (Alipay) vs. Traditional Banking: Alipay disrupted the financial industry by offering mobile payments, peer-to-peer transfers, and various financial services.

6.     Examples in Social Media & Messaging & Video Conferencing

     I.         Before WhatsApp - chat rooms were very popular – like chat applications like ICQ (which became OkCupid in 1997), Netmeeting, MSN Messenger, and AOL Instant Messenger, BBM: BlackBerry Messenger, etc.

    II.         Alternative to WhatsApp – Signal, Slack, Telegram, Kik, WeChat, Discord, Skype, Facebook Messenger, Google Chats, LINE, AWS Wickr, Wire

  III.         Famous search engines before Google - Yahoo, Bing, AltaVista, WebCrawler, Lycos, Excite, Dogpile, Ask Jeeves, JumpStation, etc. - Google's superior algorithm and user interface led to its dominance.

 IV.         Facebook vs. Friendster, MySpace, Six Degrees, Live Journal, AOL Instant Messenger (AIM), Second Life

   V.         LinkedIn, Snapchat, and Twitter

 VI.         There is an interesting case-study about the failure of KOO which was started as an Indian alternative to Twitter AND closed shop in 2024.

VII. There is the case of India-based music streaming company Gaana is dropping its free scheme and moving to a paid subscription-only model – as per Reuters, this move might have been prompted when Spotify failed to raise new investment or attract a buyer – and it was sold for INR 25 lakh this company which had once been valued at INR 4000 Crores & had INR 1500 Crores as actual capital.

VIII.         TikTok vs. Vine, Musical.ly: While Vine and Musical.ly pioneered short-form video content, TikTok's advanced algorithm, extensive creator tools, and global reach catapulted it to immense popularity.

 IX.         Instagram vs. Flickr: Flickr was an early photo-sharing platform, but Instagram's focus on mobile, filters, and a visually appealing interface captured a massive user base.

30 Reasons Why Is It Better to Be A Second Mover - How the Second Mover Advantage Works in Business - How the late entrants can be more successful than their pioneering competitors [this point can also fall under disadvantages of 1st movers]

1.   Researching & Creating a product is very-very expensive - both in terms of the money invested and the mistakes made on the path to success

2.    The 1st mover or pioneer spends a fortune in R&D and researching the customer preferences and needs and expectations

3.    The 1st mover or pioneer also must create awareness among their targeted audience which is another large expense

4.    The 1st mover also struggles to find and attract and retain the best talents

5.     The 1st mover also must spend a fortune on upskilling the people who might not have the skills required

6.    The 2nd mover or later entrant – gets ready to move in the ground – and can bypass many of the things that the 1st mover did AND use their funds for the most important aspects of customer, brand, supply-chain, promotion, product, service and market creating

7.    The later entrant can learn from the experience of the pioneer – manage with much lower costs and avoid a few costly mistakes that the 1st mover did

8. Many times pioneers are not very well funded they may operate from a shoestring budget as their resources are just too limited and they face cash flow issues and find it difficult to raise capital and as a result are unable to dominate their markets - So competitors enter quickly and, with more resources go on to surpass and dominate the market the 1st mover created

9.    If 2nd movers enter the market with improvement and meaningful innovation - late entry becomes a less risky and more rewarding strategy to redefine & reshape the category and reap the benefits faster than the pioneers – how Apple redefined and dominated the market category pioneered by Motorola

10.                 If there are advantages inherent in each type of move being a 1st mover OR going in later with strength – what facts, should you consider

11.                 You need to consider the expected life of the product category – when choosing & deciding if it is better to be a 1st mover or later entrant. But please understand that innovation is a key common bond between pioneering and successful late-entering companies.

12.                 If the life of a product category seems short the advantage goes to the pioneer because the product’s life cycle probably will not extend much beyond the early period – as during its life cycle the competition is likely to be weak or nonexistent and most of the profit is made. And the 1st mover can build a sort of monopoly among their customers and the late movers would have to invest too many resources in identifying and acquiring new customers.

13.                 Pioneers can have the luxury of creating a new brand altogether with no baggage of past mistakes – whereas for a later entrant or me-too - switching from one brand to another would be expensive.

14.                 Once a novelty, status, or prestige is built around a brand –new entrants may find it hard to compete with the already established brands on the same parameters – like say Rolls-Royce or Dom Perignon.

15.                 But in the cases where the latest technology or multiple objective standards determine the value of a product or service – the late movers have a greater chance of success – like the market of Cars & Bikes.

16.                 Late movers get a massive cost advantage – when they can imitate a product, service, or offer without needing to invest in R&D.

17.                 If you are an organization with a respectable cash-reserve & substantial resources – you may also strategically let 1st movers go for establishing and creating a market by bypassing the risk of pioneering.

18.                 Then you would be able to cash in on the 1st mover’s efforts by making strategies to invest in the most crucial touchpoints and improving the product & services in more impactful ways to create Lasting Advantage.

19.                 The cost of educating customers is a massive one and there is no guaranteed strategy to do that effectively for every product/service, market, or customer category – this is a differentiating factor also and an important source of lasting competitive advantage.

20.                 Later entrants can exploit the educated consumers and attract them towards their superior benefits and advantages.

21.                 But irrespective of whether you are a 1st mover or late entrant – you need to define and redefine - the ideal standards & benchmarks in the markets in which you are operating and competing in and take measures to shape how your buyers think.

22.                 Second-mover advantage uses the industry's existing customer base and advertising strategies to appeal to established markets.

23.                 By capitalizing on established success parameters instead of reinventing the wheels completely - a company can pursue a less risky venture and experience positive returns

24.                 A second-mover benefits from the first-mover by appealing to its existing customer base and using proven marketing strategies with a more distinct niche to suit either the same set of customers or a new segment.

25.                 The second mover can capitalize on industry innovation without investing that large some of capital and also can improve on the add-on features by little R&D and focused research based on existing user experiences and feedback.

26.                 First-movers spend a lot of time, effort, resources, and money - on product development, customer preferences, efficient manufacturing processes, vendor development, supply-chain development, raw material, dealer-network, business & revenue models, creating needs among the customers, creating awareness, pricing models, creating a market, product-testing and experiment with different marketing techniques – to discover what works best and is the most effective.

27.                 Customer acquisition costs and efforts are very challenging for First Mover – and as brand loyalty is not developed fully 2nd Mover can poach their customers with a better value proposition and features.

28.                 Whereas the second mover can study and analyze the first mover’s modus operandi and mistakes to eliminate methods that were ineffective and use proven strategies.

29.                 Attracting investors for a completely new product also can zap a 1st mover as they are crucial for early success and help the startups implement their business plans and manage operating costs effectively.

30.                 Although this works both ways – as many high-risk friendly investors are excited to invest in disruptive business ventures and the risk-averse investors typically find second-mover ventures more appealing.

31.                 Techno-savvy buyers get attracted to the originality – this phenomenon can also be used by the 2nd movers by identifying gaps and new unmet needs to attract the buyers and using the latest & relevant cutting-edge technology.

42 Tips How To Create A Second-Mover Advantage To Be A Highly Successful Business

1.   Many times, especially in today’s ultra-fast changing Technology time – the 2nd mover can get unbeatable advantages by using the latest technology to beat the 1st over who might be using an older technology.

Read the remaining article as per the following details

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