Let’s talk about first mover disadvantage.

Now you say I have heard of first mover advantage but what is the first mover disadvantage? There is a very interesting story around it.

This entire concept of first mover advantage was given by two Standford professors and 10 years down the line they revised their theory about having first mover advantage and they talked about the fact that in fact, you end up having first mover disadvantage

It is Very interesting concept and the professors’ names are David Montgomery and Marvin Liberman.

It is very clearly written that the irony is that, that is a retrospective paper 10 years later another backed off from their claims.

Now, we need to understand that. Why does this happen?

what ends ub happening is that first movers in the serval Innovation industry, have a lot of cost disadvantages.
Now, what to do? I mean by that?

So let me show you a chart{in the next story}.
This is regarding 2020, Google’s profit margin. Now you can see from that particular chart that Google pay profit, margins improved substantially.
Now, if you take a look of that particular paragraph and chart, you will see that these numbers come from a time when none of the competitors in the UPI space have been able to make any money.

Players in space such as Paytm and Phone Pay have been deep into losses due to high marketing and cashback spending.

Now one could argue that Paytm got a significant advantage when the demonetization drive was announced in 2016 and Paytm spent an insane amount of money. Educating people as to why digital payments are much better,
They took something called a customer education cost.

Now interestingly, By the time, Google Pay comes into the picture. Google Pay already has an entire customer base, that is entirely educated about the UPI and online payments. So they did not have to spend money in terms of educating customers about this issue. So as a result, not beginning early in the game is, a pro advantage for Google Pay.