Another market entry strategy which is much debated about is the late mover based market entry strategy. Through this strategy the company enters the market after one or more people have already started offering the product in the market. In such a case the product launched by the company is not new; in fact it is often a me-too product, while sometimes the product can also have significant differentiation in terms of functionality and usage.
The costs that are related to the late mover entry strategy include the regulation of the price and the service quality, and standards by the early movers of the market who have already established themselves in the market. Moreover they are also able to set up significant barriers of entry into the market by developing a consortium, an agreement with other big players in the market as well as the government and regulatory authorities. This combined with the expense of setting up manufacturing plants as well as the technological investment can create high costs for entry for the late comer. The other costs that are faced by the late movers pertain to the consumer switching costs through which the customers of the first movers are provided incentives and better offers for switching to the late movers.