Entrepreneurs are a major part of Hawaii’s economic engine and competition among entrepreneurs is what drives innovation and fuels markets. Entrepreneurs compete for customers, desirable contracts and resources, market share and profits. But what about the idea of first mover’s advantage? Is it true that the entrepreneur who launches first has an advantage over their slower competitors when it comes to resources, market share and the knowledge that helped it create the segment?
When it comes to entrepreneurship, is first mover’s advantage real?
In short, the answer is yes and no. A first mover does have certain advantages because they can initially capture 100 percent market share in the segment they have created. If they have a great product and build brand loyalty, this market share may be difficult for later market entrants to eat into in a significant way.
There are situations, however, where a long-standing giant and first-mover in a given market has simply stifled its initial advantage by failing to adapt to changing trends. Kodak is an example of a company that was overly confident in their products and the way that they had done business for decades. They failed to see the writing on the wall and adapt to new market players and trends. There are other businesses that dominated their market for decades and when they saw market forces coming that would affect their bottom line, chose to diversify their portfolio in order to remain competitive. There are several oil companies, for example, that have invested in renewable energy. What we see here is that a business’ decisions affect their long-term success, regardless of whether they were the “first-mover” in their market.
There have also been situations where a start-up rushed their product to market to ensure that they were the “first mover” only to expose the product’s flaws. Another company then imitates and resolves the issues with the first mover’s product and ends up with the runaway success. It’s hard to believe now, but Google did not launch the original search engine.
There are arguments to be made for and against first mover’s advantage but the bottom line seems to be that even if it is real, it doesn’t last forever. The decisions made by entrepreneurs at every stage of their start up from concept and research to established enterprise as well as how they react to impending market forces affect their share of the pie in their chosen market(s).
Partnering with Makai HR
Is your start-up ready to expand with a team of employees? We’ve got you covered through HR outsourcing! When you partner with Makai HR you can get on with the business you are trying to grow while we take care of your employee needs from payroll to taxes, health insurance/benefits and worker’s compensation. You also gain peace of mind that you are in compliance with all of Hawaii’s employer laws (if you’ve ever looked you know that the list is very long). When choosing a PEO to partner with, there are many things to consider including cost, services and technology solutions.
With the cost of doing business in Hawaii at record highs, we know how important it is to keep labor costs in line with revenue. Our plans are priced competitively and include value-added services like time-in/time-out systems. Our three tiers of PEO service plans are tailored to the size of your business and specific needs. We offer a 100% paperless solution which means that your employees can manage their needs through a computer, tablet or phone. We can truly improve your employees work benefits while freeing you up to run your business.
What are you waiting for? Companies who partner with a PEO benefit from 7-9% faster growth, 10-14% lower employee turnover; and they are 50% less likely to go out of business. ,Contact us today to get started!