Final answer:
You achieve a first-mover advantage by entering the market and building your database before anyone else. Barriers to entry like legal, technological, and market forces can be circumvented with innovation, strategic partnerships, and protective business practices such as trademarks and trade secrets.
Step-by-step explanation:
If you can enter the market and build your data-base before anyone else, you achieve a first-mover advantage in which it becomes increasingly difficult for competitors to enter the market and persuade your customers to switch.
Barriers to entry can be categorized as legal, technological, or market forces that may discourage or prevent potential competitors from entering a market. These can vary from the cost of renting retail space to exclusive rights such as owning all available radio frequencies for broadcasting. Overcoming such barriers requires specific strategies.
For example, if developing a web browser in a market with significant barriers to entry, some strategies could include innovation, forming strategic partnerships, leveraging existing brand reputation, engaging in predatory pricing, securing trade secrets, and obtaining trademarks to protect your brand and product uniqueness. This approach can help in not only entering the market but also in establishing a strong position that can deter new competitors.