Does order of entry shape competitive strategies? An analysis of European mobile operators

Abstract Research on first mover advantages is interested in the performance effects of the order of entry into new markets. However, with a few exceptions, the competitive strategies used by different cohorts of entrants have not been studied. We advance research on first mover advantages by arguing that pioneers and followers differ in terms of the competitive strategy employed. Additionally, our research proposes that the different competitive strategies used evolve over time. To test our hypotheses, we use data from the European mobile industry. Our findings show that pioneers benefit from a hybrid strategy in the initial stages of the market development. However, over time, the relative position of first movers in terms of quality, prices and operating costs worsens.