Snowdon (2007) and Burgelman, Grove, and Meza (2006) aptly noted that Oligopolies have tendencies of designing strategies that give them a competitive advantage in the market. This is significant in companies that have converging market characteristic. First mover is one of the strategies employed as an entry behavior. For new companies that want to make an impression, the first mover strategy may entail a broader approach on a number of its products and services. Companies that are already in the market will leverage on the first mover by concentrating on specific products and not on the entire brand. The strategy is meant to establish the product’s image to the market with an impact that goes beyond the specific product competitiveness (Channel Intel, 2011; Snowdon, 2007; Burgelman, Grove, & Meza, 2006).

Channel Intel (2011) systemizes the market entry behaviours of two tech titans; Microsoft and Intel. Microsoft’s browser Explorer was a strategic entry into the market. The product was on demand but the company pegged Explorer’s market influence on the Microsoft operating systems. The benefits were not directly from the product, but its adoption on the market sealed the public demand of its compatibility products. In essence, the browser was used as market bait to the core products of Microsoft. On the other hand, Intel introduced the dynamic strategy on the processor technology. The speed of procession and interface capacity of the processors revolutionized technology at fast rate intervals. While Explorer remained static in terms of technological advancement the Intel microprocessors changed constantly meeting the ever changing technological demands. The sustainability of the Intel products relies on research into the efficiency of the chips and their compatibility with other technologies. The Microsoft’s browser gained monopolistic characteristic in a field that already had other products. The two companies focused on profitability in their pioneering technologies while their sustainability relied on the future research and changes in the market demand (Channel Intel, 2011; Burgelman, Grove, & Meza, 2006).

 

References

Snowdon, B. (2007). Competitive advantage revisited: Michael porter on strategy and competitiveness. Journal of management inquiry, 16(3), 256 – 273. DOI: 10.1177/1056492607306333

Burgelman, A.R., Grove, S.A., & Meza, E.P. (2006). Strategic dynamics. New York, NY: McGraw

Channel Intel. (2011). Designer behind the world’s first microprocessor. Intel. Retrieved 19 May, 2014.http://www.youtube.com/watch?v=CcOk3jMRoyA.