The first company suffered from a first-mover disadvantage.
first-mover disadvantage
idiomA situation in which a company or individual that creates or introduces a new idea, product, or service is later at a disadvantage because others are able to copy or improve upon it, making the original seem less innovative or valuable, or because of other factors, such as breaking down barriers (at a cost) that others thus won't have to face.
The startup spent millions on new technology, only to face a first-mover disadvantage when competitors launched cheaper, improved versions later.
By investing heavily in unproven infrastructure, the firm encountered a significant first-mover disadvantage, as later entrants capitalized on the market without bearing the initial development costs.