1. Management Information System (GSM5170)
GROUP MEMBERS:
Case 9-3 Mahdi Mesbahi (GM04701)
` Atousa Jafarian (GM04704)
Somayeh Rezaei (GM04675)
Mina Abbar (GM04665)

3. e-commerce
Introduction
•First-movers: these companies take the first action in the market
strategically or tactically.
•Second-movers: these companies respond to the first-movers
action.
•Late-movers: these
companies accept the
lowest risk to enter the
market.
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4. e-commerce
Introduction
•First-movers advantages:
•The resources, capabilities, and merits that
help them to be the first entrances and gain
a powerful competitive advantages by
innovative actions.
•As they are alone in a monopoly market,
they have more chance to earn profit, get
customer loyalty, and make increase barriers
for other probable competitors.
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5. e-commerce
Introduction
•First-movers disadvantages:
•There is more risk to success as a
first-mover, because they will face to the
unknown factors more than next entries
•Second-movers can reduce their cost by
reengineering the processes.
•There is more potential risk due to the
extending and arranging the market
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6. e-commerce
Introduction
•Second-movers advantages:
•They usually imitate or use first-mover’s plan
to reach to their results. They can evaluate the
first-mover’s customers’ reaction and analyze
the market critical issues.
•Quick response to firs-mover’s action is a gold
key for second-movers to avoid the risks faced
by first runners. If they recognize they right
strategy and act well, they can get the
customers’ loyalty even more than first-movers. Page 6 of 28

7. e-commerce
Question 1
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8. e-commerce
Question 1
Late Second First
Mover Mover Mover
Follower Developer Innovator
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9. e-commerce
Question 1
•Second-movers disadvantages:
•To be a real successful, companies always looking
for the ways to stand on the first step to keep
themselves away of the new competitors in the
market.
•Second-movers usually emphasize the faults of
the front runners and offer the solution to them.
•For example salesforce.com website was not
user-friendly, Slashdot’s website allows users to
blog, and consumers can rent DVDs online from
the Netflix.com cheaper. Page 9 of 28

10. e-commerce
Question 2
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11. e-commerce
Question 2
• Observe the second-movers and improve on
their tactics.
• Build a reputation for high quality, guaranteed
satisfaction, and top customer support while
shopping and after the sale.
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12. e-commerce
Question 2
• Increase their ownership and control through
acquisition.
• Increase the amount of investment needed to
enter into the market
• Form contracts with key suppliers and
manufacturers.
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13. e-commerce
Question 2
• Keep all of their business plans and strategies
confidential.
• Own the ideas of its employees, once it is done
on the company’s time using the company’s
resources
• Continue establishing mutual trust and secure
access between the parties in an e-commerce
transaction
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14. e-commerce
Question 3
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15. e-commerce
Question 3
• Five strategies :
1. Be better, faster, cheaper, easier
2. Trip up incumbents with tactics from other
fields
3. Swipe their business models and start your
own race
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16. e-commerce
Question 3
• Five strategies :
5. Follow the biggest leader you can find
6. Aim for the leader’s Achilles’ heel
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17. e-commerce
Activity 1
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18. e-commerce
Activity 1
Entellium company
• Strategy of second movers
were not useful
• they were cheating in their
activities
• didn’t present the correct or exact
statistics
• they misrepresented their
revenue.
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19. e-commerce
Activity 1
digg.com
• could observe more than 236 million
per year (in 2008)
• this site is known as one of the best
news sites in the world
• maximize companies’ obtainable profit
• decline the existence cost of the
company
• reducing the number of workers Page 19 of 28

20. e-commerce
Activity 1
digg.com
• hiring a direct sales team
• emphasized some of the company’s main
preferences
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21. e-commerce
Activity 1
Peerflix
• Rivals were counteracted all Peerflix’s attempt
to be number one
• attainment of Peerflix by LiveUniverse in
September 2008
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22. e-commerce
Activity 1
• outstanding online shoe store
• the prior company in this field
is Zappos
• perfect culture of the company
• superior customer services
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23. e-commerce
Activity 1
• its database reached from 200,000 to 2 million
contacts
• Jigsaw made ready and offering an online
business directory of more than 11 million
business contacts
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24. e-commerce
Activity 1
Dun & Bradstreet subsidiary
• gathered the database of 28 million public and
private companies
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25. e-commerce
Activity 2
Assume you will start an Internet-based business
similar to one of those mentioned in this case or
another one of your choice. Would you be a first,
second, or later mover in the market you select? How
would you differentiate yourself from other
competitors or prospective new entrants? Break into
small groups to share your ideas and attempt to agree
on the best Web-based business opportunity of the
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group.

26. e-commerce
Activity 2
PriceSmart
• Second-mover
• Upgrading its strategy from
Brick-and-mortar to Click-
and-brick strategy
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27. e-commerce
Activity 2
Differentiates its business from new
entrants:
• Creating convenience for busy and disable
users
• User friendly and easy to access
• Providing customer satisfaction through its
24/7 hours customer service support
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28. Thank You

29. Present like Professionals
Created by:
Mahdi Mesbahi
mahdi.mesbahi@gmail.com