Bell Labs started mobile telephone service on June 17, 1946. Shortly after AT&T

Question

Bell Labs started mobile telephone service on June 17, 1946. Shortly after AT&T marketed the service to consumers, making AT&T the first-mover in this market. Create five measurements to determine if there was a first-mover advantage or disadvantage. Hint 1: You need to know what a measurement is. Hint 2: you cannot measure an advantage and a disadvantage with the same measurement. Hint 3: there must be a comparison value to determine if the measurement got better or worse. For example, the gas mileage of a car before a tune up and the mileage after the tune up.

Explanation / Answer

Five measurements

1) Market coverage : As this is first mover in market , this company had chance to cover the market with great extent.There was no competition .Only AT & T service was exist in the market.

2) Financial aspects : Being a first mover in market , this company was totally not understandably about the financial investment or ROR , ROI. Being new innovated product they were not able to understand the financial aspects,

3) Customer requirement : Its difficult for company to match the customers requirements with products or models.Being a new product it might be possible the customers are expecting something different & company is preparing something different.

4) Plant Set up & changes : Being the new innovation , company was facing the challenges of the frequent changes in plant & set up preparation. Because every new requirement of a customer brought some changes in plant & setup.

5) Cost aspects : Being first model , new innovation company was not able manage the cost like operating , variable cost etc. Because of that product cost went up.

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