Smart Mover, Dumb MoverSmart Mover, Dumb Mover

By: Jason SpearsBy: Jason Spears

Smart Mover, Dumb MoverSmart Mover, Dumb Mover

““Think the first mover advantage is a myth? You’re Think the first mover advantage is a myth? You’re wrong: Most pioneering dot-coms failed not because wrong: Most pioneering dot-coms failed not because they were first but because they were dumb.”they were first but because they were dumb.”

What companies should learn from the internet debacle What companies should learn from the internet debacle is not that being first is a dangerous decision, but that is not that being first is a dangerous decision, but that being dumb seldom succeedsbeing dumb seldom succeeds

3 Ways To Be A Dumb Mover3 Ways To Be A Dumb Mover Dumb: Getting your timing wrongDumb: Getting your timing wrong

If a company invests faster than it learns, it will over-drive the opportunity and If a company invests faster than it learns, it will over-drive the opportunity and end up with an expensive embarrassing failure.end up with an expensive embarrassing failure.

Dumber: Overpaying for market shareDumber: Overpaying for market share The idea of capturing a first mover advantage often produces a spending orgy The idea of capturing a first mover advantage often produces a spending orgy

among a lot of look alike competitors. Each company has the intent on ramping among a lot of look alike competitors. Each company has the intent on ramping up faster than its rivals.up faster than its rivals.

Dumbest: Being first with a business model that’s DOA (dead on arrival)Dumbest: Being first with a business model that’s DOA (dead on arrival) Many business models are brain dead from the get-go. They breathe as long as Many business models are brain dead from the get-go. They breathe as long as

they are hooked up to the ventilator of investor funds but expire the moment they are hooked up to the ventilator of investor funds but expire the moment investors swallow their grief and pull the plug.investors swallow their grief and pull the plug.

Key PointsKey Points

The goal is not to be first to market some The goal is not to be first to market some absolute sense, but to be first to put together the absolute sense, but to be first to put together the precise combination of features, value, and precise combination of features, value, and sound business economics that unlocks a sound business economics that unlocks a profitable new market.profitable new market.

Sometimes the company that does this is the Sometimes the company that does this is the first mover, and sometimes it is not. But it’s first mover, and sometimes it is not. But it’s always the smart mover.always the smart mover.