Brief 5: Are First Mover Advantages effective in the Simulation Game | Dissertation Writing

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Brief 5: Are First Mover Advantages effective in the Simulation Game

Brief 5: Are First Mover Advantages effective in the Simulation Game when entering new markets, or can success accrue to airlines who are ‘Fast Followers’? Illustrate your answer through examples.

Applicability of such strategies like first movers and fast followers depend on the prevailing market situation. However, in deciding to apply either of the strategy, it is paramount to determine the merits and demerits of each strategy. Therefore, a market survey aimed at determining the situation of the airline in each quarter is inevitable.

The main aim was for the airline to establish new markets right from the first quarter, and surprisingly, by the second quarter, the airline had entered two new markets; with one having no competitors. Of the market established, market 16 was more rewarding as the airline was able to gain a first mover advantage. Right from the time the service launch was conducted in market 16, all the seats were sold prompting an addition flight in the third quarter. This move provided a significant opportunity for the airline to create brand loyalty and dominate the market, something that is always seen as the principle barrier to market entry. It was not until the fifth quarter that an eminent competitor arrived in this market, but their stay was short lived since the airline had already established and cemented their position in this market. Their stay in this market lasted for two quarters only.

The financial performance of our airline had improved, making it evident that the airline was indeed the market leaders in the airline industry. Our airline was the only one that reported positive results after making profit right from the first quarter. The main objective now turned to how the airline would increase its benefits by expanding its market base, and safeguard the organization’s current market share. The aim was to start entering new markets, though with some competitors already present. In the new market, the airline was able to weather all the competition, owing to its strong brand name. In line to this, being a fast follower did not necessary put us behind the market leaders. The company concentrated on consumer oriented services, rather than focusing on the competition. The company was able to offer special services in these new markets, which made it stand out against its competitors. This proved the fact that a firm could establish new strategies, regard of being a follower.

In conclusion, a firm can successfully employ First Mover and Fast Followers strategies to dominate a market. Being a first mover will definitely bring about some advantages but what is more significant is how to maintain dominance, though being new in the market. To be a fast follower, the speed of entry and response to competitors’ moves is very important. It is also important not to make ourselves into another ‘me-too’ company.

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