When Entering a New Product Market with an Innovative Product,an

question 3

Multiple Choice

When entering a new product market with an innovative product,an established company should select the optimal time of entry based upon:

• A)The principle that early-mover advantage is the key to success in new markets
• B)Recognition that risk is reduced by waiting to see how technology and customer requirements will shape the emerging industry
• C)Trading off early mover advantages against the benefits of waiting to the point when an established firm's resources and capabilities can maximize their effectiveness
• D)The potential to exploit network externalities in order to establish a dominant standard