1.
• Not built on a new idea
• Established business
processes, supply chain
networks and regulatory
frameworks.
• Still 50% failure rate

2.
• Starts with something new.
An acceptable definition of
new is a process or product
that is 10x better.
• They often start with a
small market segment that
they can dominate.

3.
• Have to develop business
processes, supply chain
networks and regulatory
frameworks.
• Startups need to grow fast.

4.
Startups are
often First
Movers

5.
First Mover
• Have the be the
“explainer”
• Have to work out all
the R&D issues
• Are “stuck” with your
product design for
some period
Disadvantages
• First To Market.
• Can capture
market share
much more easily
without having to
worry about rivals
• Initial Press
Advantages

6.
Fast
Followers are
more likely to
win

7.
Fast Follower
Advantages
• Don’t need to be the First Mover to
Innovate.
• Know what the market is for the
products.
• Use your existing place in the
Market/existing resources to promote
your new product.

8.
First Mover
First to sell
the product
47% failure
rate
Fast Follower
Entered early
but not first
8% failure rate
1.P. N. Golder and G. J. Tellis. 1993. “Pioneer Advantage: Marketing Logic
or Marketing Legend?” Journal of Marketing Research, 30(2):158–170.

9.
First Mover (FM) or Fast Follower (FF)

10.
First Mover (FM) or Fast Follower (FF)

11.
First Mover (FM) or Fast Follower (FF)

12.
First Mover (FM) or Fast Follower (FF)

13.
First Mover (FM) or Fast Follower (FF)

14.
First Mover (FM) or Fast Follower (FF)

15.
“A word of warning about
choosing to start a startup:
It sucks!”