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1). Why firms need to study and understand their internal organization? Minimum 250 words.
"A first mover is a firm that takes an initial competitive action in order to build or defend its competitive advantages or to improve its market position" (University of Phoenix, 2017, p.146). Quoted by Joseph Schumpeter the concept of first movers was based on firms achieving a competitive advantage by taking on innovative actions. There are substantial benefits that come along with first movers. Within fast paced markets where change happens rapid and where it's impossible in sustaining a competitive advantage over a period of time.
Second movers on the other hand, are firms that respond to the actions on the first movers (competitive actions), which is done through imitation. Developing processes and technologies are done through second movers, and second movers are more efficient as well.
Late movers respond to the competitor's action in a significant amount of time, after action has been made by the first and second movers. When firms compete against late movers can predict what the likelihood would be when entering into the market, after the first and second movers have done so.
2). Can you now offer an example of each level of movers? Perhaps use the cell phone industry and examine the different firms and outline why you feel they are first second or late movers and why? minimum 250 words.
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