What is first mover advantage — and is it really an advantage?

First mover advantage, a concept widely recognized by product managers and entrepreneurs, suggests that being the first to enter a market or address a specific need can offer a significant edge over competitors. This advantage allows companies to explore uncharted territory, focus on customer needs without immediate competition, establish strong brand recognition, and potentially raise barriers to entry for others. However, it also presents challenges such as high costs, increased risk, and the possibility of inadvertently lowering barriers for future entrants who can learn from the pioneer's mistakes. Ultimately, the key to leveraging first mover advantage lies not merely in being the initial market entrant but in effectively establishing a lasting presence in consumers' minds, as demonstrated by historical examples like Coca-Cola and IBM.