1. Is there an advantage to being a first mover? What drawbacks are there to pursuing first-mover advantage? Is Tesla pursuing a first-mover advantage with their product launches?

Answer is given below :

Explanation:

Initial Benefits of Mover

Technical Innovation is the first proposer to see high-tech skills in the market while continuing to bring value to their companies. Therefore, later entrants will spend more time improving the product. The first mover can also apply patents for its invention and technology. It is therefore even more difficult for new entrants to challenge the first proposal. Conserving the required resources The first mover can control a lot of resources in the beginning. For example, they can oversee raw materials, experienced workers, early buyers, etc. However, unlike the first shipment, recent competitors do not have enough money, which makes it a challenge for them to succeed in the marketIncrease switching costs The first shipping customer gets the rewards of changing costs, as consumers eventually change their purchasing policies. So with increasing switching costs, the first mover can benefit.

disadvantage of first mover

Customers are struggling to adapt to new technology because they are not sure if it works. After all, no one is at risk of trying something new. Innovation is a high-risk task because it costs too much and can fail. Although first movers need to take a huge risk, they need to create something new to open up the market. After successfully opening the market, they will have to face the pressure of potential competition as more and more consumers will try to copy their goods and make money from the market. And, in order to earn revenue in the industry, they have to deal with newcomers.

Finally for Tesla, yes. Tesla follows the advantage of the first mover as it focuses exclusively on the new market hybrid cars. Tesla has also released the Model 3, which will help Tesla gain a greater strategic advantage in the electric vehicle market.