What are some of the benefits of first-mover advantage?

Context: In marketing strategy, first-mover advantage is the competitive advantage gained by the initial significant occupant of a market segment. First-mover advantage enables a company or firm to establish strong brand recognition, customer loyalty, and early purchase of resources before other competitors enter the market segment.

First movers in a specific industry are almost always followed by competitors that attempt to capitalize on the first movers' success. These followers are also aiming to gain market share; however, most of the time the first-movers will already have an established market share, with a loyal customer base that allows them to maintain their market share.

Answer: First-mover advantage may enable a company or firm to gain competitive advantage by establishing customer loyalty, strong brand recognition, and early purchase of inputs before other competitors enter the market.