Hi! Managers: Being 'first' can be a dilemma for a firm
It is my pleasure to be among the respected thought leaders who have regularly shared their experiences and perspectives through the Hi! Manager column in The Nation. I have thought of what should be my first article after moving to assume my new assignme
Being first sometimes is a privilege and can bring some good things for your business and company. For instance, being first in the market, also known as "first mover advantage", can be really helpful for the company, especially when the market has only a limited number of competitive players in the industry. You will be able to enjoy the lucrative business opportunities easily. However, being first sometimes can also bring disaster to the business as you will be the guinea pig and other players in the market can learn from your mistakes. You can see many examples of this in today's business across all industries.
Clearly, most of the time being first has inevitably meant working through many challenges. We have also experienced many examples of being "first" recently in our country. The latest one would be having the first woman prime minister in our political history. Definitely, it's a good sign for the country to pave the path of opportunity, regardless of gender. However, it's unavoidable for the newly appointed prime minister to face many challenges.
Similarly, we also saw many examples from the FMCG industry that all key players are rolling out many new innovations. Some are first to enter the market and some are just line extensions with new formula to fulfil unmet needs of consumers. For instance, with the attractive double-digit growth in the male skincare market, Olay, the leading female skin moisturiser, has launched for the first time a skincare product for men under its brand identity. This is a big move for Olay to expand its market to these new target users. Also, for the first time, Gillette, the world's leading blade and razor maker, has introduced skincare for men. This has made Gillette the first holistic male-grooming expert, from shaving care to skincare. Both Olay and Gillette have to face the new challenge and learn from their key competitors. Both brands have to move fast and in tandem with other players for this attractive business opportunity.
As I mentioned above, being first sometimes can be a dilemma, the most important thing for us as managers is to ensure we have a thorough plan on what we can gain and what are the key challenges we have to take into account. Here are some of my perspectives, which I think are good to consider when you are first, especially when you have penetrated a new market.
Firstly, make sure of your understanding of the macro and micro environment of your markets. Assessing the macro environment includes understanding your industry, the regulatory and legal, technological and also rivalry landscape. Besides, it also includes the opportunities for growth and upcoming threats that may emerge when you are in the market for a few years. For a micro-environment assessment, it will be more about your target consumers and projection of your size of business. You have to dig down to have a better understanding of suppliers, logistics and physical distribution so as to have a clear picture on how you can benefit from them.
Secondly, you should make sure you have a back-up plan to deal with unfortunate circumstances. A contingency plan will help you avoid big mistakes that can hurt your business. I have seen many local players, especially among SME business owners in Thailand, overlook the need for a contingency plan. It is in fact really helpful in reviewing your business plan from different perspectives.
Thirdly, reviewing and closely tracking your business results and also learning from competitors regularly will help you know how you can win them over effectively and efficiently. It also helps you to know what opportunities remain in the market and which direction you should gear towards. My perspectives shared here can be just a starting point for you to be cautious about being first in your industry.
To me, it's not important whether you are first or not. But it's important for all of us to be cautious and careful about your business decision and how to maintain your momentum of growth in the market. Maybe you could be the first to win and sustain your place in the market, where you can last forever.
Medhee Jarumaneeroj is influencer marketing and external relations leader, Asia Male Grooming, Procter & Gamble. Follow his articles every fourth Monday of the month.
