First Mover: Definition, Advantages, Example

By Lyle Daly – Updated Jan 23, 2025 at 9:26 PM

Key Points

First movers often capture a significant market share and establish brand dominance.
Investing in established first movers is generally safer than trying to find new ones.
Some companies have seen explosive growth because of the first-mover advantage, but there are also risks and drawbacks.

Being the first mover can be a big benefit in the business world. Companies often race to be the first to market, and some of the largest companies in the world have established themselves in part because of the first-mover advantage.

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Racers look determined as they are about to start running. — Image source: Getty Images.

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About the Author

Lyle Daly is a contributing Motley Fool stock market analyst covering information technology and cryptocurrency. Lyle has been a contributor at the financial services company since 2018. His work has been featured on USA Today, Yahoo Finance, MSN, Fox Business, and Nasdaq. Before joining The Motley Fool, he wrote for financial brands including Intuit.

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@LyleDaly

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Lyle Daly has the following options: long February 2025 $149 calls on Nvidia. The Motley Fool has positions in and recommends Amazon, Nvidia, and eBay. The Motley Fool has a disclosure policy.