What is first-mover advantage?

First-mover advantage is the competitive edge a company gains by being first into a market: it can define the category, capture the obvious brand position, lock in customers through switching costs, and learn faster than followers.

The advantage is real but overrated — fast followers often win by letting the pioneer educate the market and then out-executing them. Being first only compounds if you convert the head start into durable assets like distribution, data, or a moat.