(1) reputation and brand loyalty. The first entrant can win the reputation of technology leader first, and win greater consumer brand loyalty and market share.
(2) Give priority to all kinds of scarce resources. Taking the lead in introducing a technology into its industry and market can seize the attractive market.
(3) The technology that is beneficial to oneself becomes the dominant design and technical standard. In industries where leading design and technical standards occupy an important position, technical leaders can make full use of intellectual property protection system and self-reinforcing positive feedback mechanism to gain market dominance.
(4) Get early high profits. In industries such as electronic information, when new products enter the market, due to their scarcity, they can sign contracts with buyers at relatively high prices and obtain relatively high profit margins and profits.
(5) Users are locked because of switching costs.
2. Disadvantages:
(1) R&D investment is relatively large, and the risks undertaken are relatively high. Taking the lead in developing new technologies often requires a lot of research and development costs.
(2) bear the relatively large cost of establishing distribution channels and market development.
(3) The cost increase caused by immature supporting technologies and products. When developing new technologies and products, enterprises often need to rely on other manufacturers to provide related technologies and supporting products.
(4) It is difficult to accurately understand the needs of customers. When a brand-new or brand-new product is put into the market, it is difficult for the first entrant to accurately understand the customer's demand for product performance and the price he is willing to pay because of the lack of market information.
(5) The risks brought by breakthrough technological changes. Once there is a technological change that destroys the ability, it will make it difficult for the leading entrants to play their role in the existing technology and bring huge losses.