Question
How ‘first mover advantage’ is made available by the business environment? Give an example.

Answer

The study of business environment enables us to know about the opportunities available. A company which is more conscious about the changes taking place in the business environment is the first mover. For example, the ASIAN PAINTS a leading company of the paint industry, at one stage lagged behind because of technology. This was smartly understood by another company, GOODLASS NEROLAC (GN). In order to exploit this situation, the latter company entered with a contract with a foreign company named KANSAI PAINTS (KP) with the purpose of acquiring latest technology. The KP made available to the GN the Cathodic Electro Deposition (CED) technology. On this very basis, the GN was able to obtain the contract for the entire paint requirements of the MARUTI UDYOG. In this way, the GN earned huge profits by entering the market with the latest technology. It was a first mover advantage of the company.

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