We have all heard about first mover advantage and how important it is, especially in the so-called "New Economy" and with e-related businesses. The story goes, “ If we are first in the market place, we can gain market recognition, market share early and the lion’s share of the market’s money. We can become entrenched in the market so that our lead will be insurmountable and then we can ride the wave of momentum and relax." First mover advantage is a bit more complicated than that. In fact, being first may be a disadvantage. Ultimately, relying on being first mover as a(n) (Internet) strategy and/or competitive advantage involves a great amount of risk.
Brown, Terrence Edison, "E-Business and the Death of First Mover Advantage" (2001). ICEB 2001 Proceedings (Hong Kong, SAR China). 2.