Page "First-mover advantage" Paragraph 20

“ New entrants exploit technological discontinuities to displace existing incumbents ”.

In this case of first mover disadvantages, the late entrants are able to assess a market need that will replace what is currently being offered.

This takes place when the first mover does not adapt or see the change in the customer needs, but also when competitor develops a better, more efficient, and sometimes less expensive product.

Oftentimes this new technology is introduced while the older technology is still growing, and in this case the new technology may not be seen as an immediate threat.