Customer loyalty and brand recognition are pivotal for first movers. By being the first to market, a company can establish strong relationships with customers, which can lead to long-term loyalty. Additionally, early entry allows a company to build a recognizable brand, making it difficult for later entrants to gain traction.

First movers often capture a large market share before competitors enter the field. This early dominance can create barriers to entry, as new entrants must invest significantly to compete with the established leader. High initial market share can also lead to economies of scale, further solidifying the first mover's position.

Switching costs are the expenses or inconveniences that customers face when changing from one product or service to another. First movers can design their offerings to increase these costs, making it less attractive for customers to switch to a competitor. Network effects occur when the value of a product increases as more people use it, a common advantage for first movers in technology-driven markets.

First movers often invest heavily in proprietary technology and securing intellectual property rights. These investments can provide legal protection and technological superiority, making it challenging for competitors to offer similar products.

The first-mover advantage can translate into a competitive advantage through economies of scale. As the first entrant grows, it can reduce costs per unit through bulk production and operational efficiencies, making it difficult for new entrants to compete on price and quality.