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I don't like the term "first mover", because in practice, I think it's rare for the actual first to win. Friendster was the first friend-oriented online social network. They were the first mover, but the site performed terribly. MySpace and Facebook beat Friendster because they were better at doing what people wanted.

There are other examples. The iPhone was not the first smart phone, but it was better than all of the others when it came out. It dominated for a while, and even though it's no longer the dominant smart phone (I believe there are more Android phones), all smart phones are derivatives of that first iPhone. Google beat Yahoo and AltaVista. Historically, I think it's usually second-movers that win, because they tend to benefit from the first-movers defining the problem, and one of the second-movers solves it better.



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