Market Timing · Early and late · Component

The late cost

What displacing an established position would take — considerably more than reaching an empty market.

The deliverable

What it is

Arriving late means competing against an incumbent with customers, a track record and switching costs on their side. It is expensive and it is survivable.

The late entrant’s advantage is a market that has been educated by someone else, which is worth more than it is usually credited.

One level in

What it is made of

Each element is a constituent part of the component. Follow one to see the attributes it carries.

  1. The incumbent

    What is already established.

    3 attributes: Incumbent · Share · Switching cost

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  2. The requirement

    How much better a late entrant has to be.

    3 attributes: Required advantage · On what dimension · Achievable

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  3. The advantage

    What being late is worth.

    3 attributes: Advantage · Value · Incumbent mistakes

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The late entrant gets an educated market they did not pay to educate. That is worth more than it is credited.