Which of the following is an example of a first-mover advantage?
A)The ability to create switching costs that tie customers into one's products or services
B)The avoidance of pioneering costs that a later entrant into the foreign market has to bear
C)The increased probability of surviving in a foreign market
D)The opportunity to observe and learn from the mistakes of other entrants
E)The ability to let later entrants ride ahead on the experience curve

Question

Quizplus · Accepted Answer

The advantages frequently associated with entering a foreign market early are commonly known as first-mover advantages. One first-mover advantage is the ability of early entrants to create switching costs that tie customers into their products or services. Such switching costs make it difficult for later entrants to win business.

Which of the Following Is an Example of a First-Mover