First movers in an industry often capture above-average profits but usually find it difficult to maintain early market share gains.

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First movers have several advantages. They often capture unusually high profits because there are no competitors to drive prices down. First movers that establish brand recognition are usually able to retain their image and hold on to the market share gained by being first. Generally, first movers have an advantage that can be sustained until the maturity phase of the industry life cycle.

First Movers in an Industry Often Capture Above-Average Profits but Usually