Numerous theoretical and empirical studies have been examined to gain insight into the advantages and disadvantages that accrue to first-mover or pioneering companies.
The purpose of this study is to examine the late mover's advantage in the multimedia industry.
First, past studies are reviewed focusing on research methods. Also, the determinants of first-mover advantage studied in those studies are identified. Then two cases in the multimedia business, i.e., the PDA industry and the multimedia CD player industry, are analyzed. Major findings include the following :
(1) There is the late-mover's advantage in the PDA and the multimedia CD player industry.
(2) The impressive business performance of late movers come from the focused definition of product concepts and markets, and the learning from mistakes of first movers.
