When a First Mover Does Not Have Complementary Assets, Barriers

question 20

Multiple Choice

When a first mover does not have complementary assets, barriers to imitation are high, and there are several capable competitors, the first mover should:

• A)license the innovation to others.
• B)enter into a joint venture to protect the product.
• C)lower the barriers for imitation.
• D)sell the technology outright to another finn.
• E)wait until competitors develop an alternative product.

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Definitions:

Product Class

A category that groups products based on their function, consumer perceptions, or attributes, such as electronics or household goods.

Product Form

Pertains to variations of a product within the product class.

Solar Rechargeable Batteries

Batteries that can be recharged by converting sunlight directly into electrical energy through photovoltaic cells.

Product Life Cycle

An idea that outlines the phases a product experiences from its launch, to expansion, peak, and finally, its decrease in the marketplace.