Magazine publishing is an industry sector that thrives on product innovation. A publisher launches a new title linked to an imaginative theme or topical interest, invariably to be followed by imitative titles from other publishers. In this sector how likely are the first-movers or (early) followers to extract the highest returns? What lessons, if any, apply more generally?
What will be an ideal response?
It is possible that first-mover advantage will result in the publisher securing the dominant share of a
new segment. By its nature, an innovative magazine is readily available for inspection, so imitation
is relatively easy. An alert would-be follower can benefit from research into what aspects of the new
product consumers like and what they do not, tailoring its own offering accordingly. In general, it
seems probable that the winner will be the best-resourced publisher, one that enjoys a combination
of wide distribution, access to good sources of information, celebrities etc., good journalists,
sophisticated production organization and an excellent reputation for relevant, high quality
publications (Future Publications is a good example). First movers generally benefit from being first
to specify the product in detail, which obliges competitors to conceive some way of distinguishing
their offerings or be seen as a poor copy. If a leader is innovative and has a good reputation, it will
gain the attention and respect of external constituencies on which it depends, particularly magazine
distributors and retailers. These lessons apply to many consumer-goods enterprises.
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