Abc for Cba

<Assignment #4>

Choose two companies in the same industry, say company A (Champion) and Company B (Challenger), that have different service concepts. Describe the value, form and function, experience, and outcomes of company B’s service concept, and conduct a comparison analysis of the two service concepts.

Mohammad Zahedy (20152455)

Sungwoo Kim (20152710)

A first mover is a company that takes an initial competitive action. Being a first mover can confer the advantages of brand loyalty and technological leadership, preemption of scarce assets, exploiting buyer switching cost, and reaping increasing returns advantages. So, first mover generally enjoy glory as a champion at the beginning stage of new market. However, followers which respond to a first mover’s competitive action also have some advantages in reduction in demand uncertainty, market research to improve satisfying customer needs, learning from the first mover’s successes and shortcomings, and gaining time for R&D to develop a superior product. In this assignment, we are going to introduce the case how second mover which was a competitor at the beginning overtake the leading company (first mover) in VoIP service industry.

VoIP (Voice Over IP) is a methodology and group of technologies for the delivery of voice communications and multimedia session over Internet Protocol (IP) networks. The first mover and champion in the market was Dialpad. It was very surprising when Dialpad was initially introduced and came to have business idea with VoIP. Dialpad was developed by a branch of Solborn in Silicon Valley of America at March 1999. But Dialpad couldn’t use advantages of the first mover and yielded the top position. Its voice quality was low, and the coverage of communication was limited to America and Canada only. Moreover, switch of charged service promoted