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Planning, Implementing, and Evaluating Marketing Strategies | Chapter 2 35

Going Green

GE’s Ecomagination Saves and Earns Billions

General Electric launched Ecomagination as part of its Given GE’s global business presence, any green products
corporate strategy to “imagine and build innovative solu- it develops in one region can be distributed or adapted
tions to today’s environmental challenges while driving for distribution in other regions. For example, an energy-
economic growth.” Since embracing this green strategy, efficient portable ultrasound scanner designed for China
GE has saved billions of dollars through energy and water was later introduced worldwide. Another product, the
conservation, generated billions in new revenue, and WattStation, is a user-friendly electric car charging station
polished its image as a socially responsible firm. designed for use in suburban parking lots or on city streets.
Ecomagination combines GE’s strengths in customer Although Ecomagination products already account
knowledge, design, and manufacturing to create and for 12 percent of GE’s $ 150 billion annual revenue, the
market dozens of green products for consumers and busi- company is inviting new ideas from consumers and
ness customers. “This design signal we’re getting from the businesses. Watch for more green to flow to GE’s bottom
marketplace is affordability, efficiency, and environmental line as it continues its successful green strategy in the
sensitivity,” says Mark Vachon, who heads Ecomagination. coming years.
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the marketing environment. When a competitor’s introduction of a new product threatens a
company, a firm may require a defensive strategy. If the company can develop and launch a
new product that meets or exceeds the competition’s offering, it can transform the threat into
an opportunity.

First-Mover and Late-Mover Advantage

An important factor that marketers must consider when identifying organizational resources
and opportunities is whether the firm has the resources to cultivate a first-mover advantage,
or is in a position to choose between developing a first-mover or late-mover advantage.
A fi rst-mover advantage is the ability of an innovative company to achieve long-term
competitive advantages by being the first to offer a certain product in the marketplace.
Being the first to enter a market helps a company build a reputation as a pioneer and market
leader. For a first mover, the market is, for at least a short period, free of competition as
potential competitors work to develop a rival product. Because consumers have no choice
initially, being a first mover also helps establish customer brand loyalty in cases when
switching to another brand later, when there are more options, may be costly or difficult
for the consumer. The first to develop a new product can also protect secrets and technol-
ogy through patents.
There are risks, however, of being the first to enter a market. There are usually high outlays first-mover advantage The
associated with creating a new product, including market research, product development, pro- ability of an innovative company
to achieve long-term com-
duction, and marketing—or buyer education—costs. Also, early sales growth may not match
petitive advantages by being the
predictions if the firm overestimates demand or fails to target marketing efforts properly. The
first to offer a certain product in
company runs the risk that the product will fail due to market uncertainty, or that the product
the marketplace
might not completely meet consumers’ expectations or needs.
late-mover advantage The
A late-mover advantage is the ability of later market entrants to achieve long-term
ability of later market entrants
competitive advantages by not being the first to offer a certain product in a marketplace.
to achieve long-term competi-
Competitors that enter the market later can benefit from the first mover’s mistakes and have tive advantages by not being the
a chance to improve on the product design and marketing strategy. A late mover is also likely first to offer a certain product in
to have lower initial investment costs than the first mover because the first mover has already a marketplace

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