WILL AND VISION: How Latecomers Grow to Dominate Markets

Although the "first mover's advantage," a belief that the first company to make inroads into a marketplace has an almost insurmountable advantage, has gained acceptance in recent years, these authors contend it is a faulty conviction based on spotty research. Tellis (who teaches at USC's business school) and Golder (of NYU's Stern School) contend that there are three primary reasons for this incorrect principle. First, the research that has been done tends to downplay those pioneers who failed. Second, the studies tend to interview current leaders of successful companies who may not have a firm grasp of the industry's history. And three, the research tends to define markets very narrowly. After spending the last 10 years studying the history of 66 industries, the authors conclude that "the real causes of enduring market leadership are vision and will. Enduring market leaders have a revolutionary and inspiring vision of the mass market and they exhibit an indomitable will to realize that vision." The authors present countless examples to back their points. People who endorse the first mover's advantage will probably not be swayed by Tellis and Golder's argument, citing personal examples. But this work is bound to make companies question whether they need to be first and also reexamine just how strong their devotion to a particular market is. (Oct.)