Telcos

First Mover Advantages In The Mobile Telecommunications Industry

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Executive Summary

This paper offers a consumer-centric view of entry order advantages and the role of firm-level capabilities. Specifically, the authors consider the fact that early adopting consumers will be different from late adopting ones. They suggest that early entering firms will attract higher-profitability customers, and that this will be a key source of first-mover advantages. Additionally, this effect will be stronger for firms with strong technological capabilities as early adopters are generally more technology-oriented than late adopters. Conversely, firms with existing marketing and branding resources in the country will do better at attracting a high volume of less-profitable customers - standard late adopters that are swayed by brand effects.

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