Lessons to be Learned from the Benefits of Late Mover Business
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Various industrial sectors have emerged with startups releasing product innovations. Not only have they emerged as pioneers in providing certain services, several startups have also dared to take the risk of becoming competitors. Even though you are not a first mover in an industry, there are advantages to be gained from making better products.
Looking at the practice, some late mover companies such as Google or Microsoft were not actually first movers, but managed to succeed by closing gaps, assessing the market, and making better products. This can also be used so that late mover businesses can still compete amidst market competition even though they are not the movers.
Benefits of Late Mover Business
In general, a successful business will be able to survive when it provides the best quality products to its market. The following are some of the benefits that late mover businesses can get.
1. Understand customer needs
Late movers have the ability to create products with higher usefulness to meet consumer needs. The reason is, consumer needs will continue to develop since its first appearance on the market.
When consumers respond to the emergence of these products, late mover businesses will learn from the mistakes of their predecessors. This is done to identify things that work and don't work for consumers. Late movers will use it to improvise and continue without having to make new requests.
2. Adapt resources well
To be able to create new market success, it takes more than just adapting to the domestic market. You must be able to fully utilize your resources and capabilities as a competitive advantage.
Companies can take advantage of this by studying multinational business to implement it systematically locally. This must also be implemented well so that the adaptation becomes a crossover idea that is able to compete with developing business giants.
3. Follow market demand
Unlike first mover companies, late mover businesses have an incentive to compete with diversity. This allows them to develop to make good products. However, they no longer need to look for new markets and only need to adapt products to suit existing market demands.
4. Stimulate business internationalization
When you are successful with existing business potential, there will be an urge to get out of your comfort zone. The biggest challenge in running a business is the challenge of expansion. Companies may encounter new realities when they first appear in the international market and this may be a concern for first movers.
An example of this situation arose when Samsung entered the international market and caused negative perceptions, even though it was highly appreciated domestically. Even so, business executives began to take a series of actions to adapt Samsung products so that they could be accepted according to the expectations of consumers abroad.
Samsung's move to enter the international market has given rise to a variety of products that are also competing. Even so, market attention will also increase due to demand from the emergence of new products. In this case, you only need to ensure that the product quality matches the consumer targets you want to achieve.
5. Lower development costs
In some industrial sectors, you may not need to allocate a very high budget for the research and development process. This is because the technology or product has been developed by the first mover. You can continue the research process of the technology that the product pioneer already has and perfect it.
These are the various lessons that late business movers can learn. Even though there is no specific standardization in starting a business, there are benefits to be had if you have learned from your predecessors. This needs to be developed and perfected so that you can fill the market gap and take advantage to continue expanding.
