First-Mover Disadvantages (Or Late-Mover Advantages)rarely Arise When

question 30

Multiple Choice

First-mover disadvantages (or late-mover advantages) rarely arise when

• A)the costs of pioneering are much higher than being a follower and only negligible learning/experience curve benefits accrue to the pioneer.
• B)rapid market evolution gives fast followers an opening to leapfrog the pioneer with next-generation products of their own.
• C)the pioneer's products are somewhat primitive and do not live up to buyer expectations, allowing clever followers to win disenchanted buyers with better-performing products.
• D)the marketplace is skeptical about the benefits of a new technology or product being pioneered by a first mover.
• E)the market response is strong and the pioneer gains a monopoly position that enables it to recover its investment.

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Definitions:

Departments

Distinct areas or divisions within an organization, each dedicated to a specific function or purpose.

Dollar Gross Profit

The total amount of money a company makes after subtracting the costs directly associated with producing its goods or services.

Net Sales

The amount of sales revenue left after deducting sales returns, allowances, and discounts from the total gross sales.

Cost of Goods Sold

An expense measured as the total direct costs attributable to the production of goods sold by a company.