In marketing strategy, first-mover advantage, or FMA, is the advantage gained by the initial (“first-moving”) significant occupant of a market segment. It may be also referred to as Technological Leadership.
A market participant has first-mover advantage if it is the first entrant and gains a competitive advantage through control of resources. With this advantage, first-movers can be rewarded with huge profit margins and a monopoly-like status.
Not all first-movers are rewarded. If the first-mover does not capitalize on its advantage, its “first-mover disadvantages” leave opportunity for new entrants to enter the market and compete more effectively and efficiently than the first-movers; such firms have “second-mover advantage.”