If a First Mover Has Complementary Assets,barriers to Imitation Are

question 22

Multiple Choice

If a first mover has complementary assets,barriers to imitation are high,and capable competitors are few,the first mover should

• A)license the innovation to others.
• B)develop and market the innovation jointly with other companies through a strategic alliance or joint venture.
• C)develop and market the innovation itself.
• D)sell the technology outright to another firm.
• E)wait until competitors develop an alternative product.

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Definitions:

Novation

The act of replacing one party in a contract with another party, or altering the terms of a contract, with all parties' consent, resulting in a new agreement.

Material Breach

A significant violation of a contract that permits the other party to either compel performance, seek remedies for damages, or terminate the agreement.

Nonbreaching Party

The party in a contract who has not violated the agreement and may be entitled to legal remedies.

Obligations

Duties or actions that an individual or entity is legally required to perform according to the terms of a contract or law.