If a First Mover Does Not Have Complementary Assets,barriers to Imitation

question 55

Multiple Choice

If a first mover does not have complementary assets,barriers to imitation are low,and there are many capable competitors,the first mover should

• A) license the innovation to others.
• B) enter into a joint venture to protect the product.
• C) produce the product itself.
• D) sell the technology outright to another firm.
• E) wait until competitors develop an alternative product.

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Definitions:

Fences

Structures erected to enclose or delineate areas, or to prevent unauthorized access or egress.

Asset Turnover

A metric that evaluates how effectively a business utilizes its assets to produce sales income.

Net Sales

The revenue from sales after subtracting returns, allowances for damaged or missing goods, and discounts.

Decision Makers

Individuals or groups responsible for making choices and forming strategies within an organization.