Which of the Following Is a Disadvantage of First Movers

question 66

Multiple Choice

Which of the following is a disadvantage of first movers?

• A) They cannot establish significant brand loyalty due to high costs.
• B) They cannot create switching costs for their customers, thus making it difficult to enter the market.
• C) They decrease sales volume compared to their rivals, and thus operate at a loss.
• D) They run the risk of building the wrong resources and capabilities.
• E) They do not have the power to exploit network effects and positive feedback loops.

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Definitions:

Compelling Purpose

A powerful and motivating reason or mission that drives individuals or organizations to achieve specific goals.

Team Leadership Model

A framework that focuses on leadership functions within teams, including goal setting, structuring, facilitating, and adapting to achieve effective team performance.

Monitor

A device or individual that observes, checks, and keeps a continuous record of a process or situation.

Appropriate Action

The decision or behavior deemed suitable for a specific situation or context, especially relating to leadership or management.