What are the advantages of being a first mover? And what are the advantages of being second mover?

First-mover advantage exists where an organisation is better off than its competitors as a result of being first to market with a new product, process or service. In theory, this creates a competitive advantage, but it also has its downsides as you are the very first to do the thing. Advantages: Network effects, scale benefits, reputation, experience curve benefits. Disadvantages: Pre-emption of scarce resources, buyer switching costs Second/follower advantages: 1. Freeriding – imitating pioneer’s strategies but more cheaply 2. Learning – from the mistakes made by pioneers