Three common entry strategies. Which one has the most appeal. Is there one entry strategy that you believe has more risk than another
The authors of our text, Barringer and Ireland recognize the three most common entry strategies as First Mover Advantage, Second mover advantage and Niche Market.
In the case of first mover, the company is the first to enter a new market. This can be an advantage because the company will set the standard and start the trend as well.
Second mover has the luxury of hindsight as they can identify the already established market and then make improvements to their products before entering the market. Facebook was a second mover company as Friendster and Myspace already existed, but Facebook was able to identify what was wrong with those two, and then dominate the market.
Niche Market is a small sector of customers that your product or service will appeal to. On the other hand a niche market is unlikely to experience much competition due to the small market.
Personally the Second Mover strategy appeal most to me as it provides a clear picture of the market. Your customer base has already been identified and the market is established. Second mover also allows a chance to release an improved product right from the start.