When entering a new product market with an innovative product,an established company should select the optimal time of entry based upon:
A)The principle that early-mover advantage is the key to success in new markets
B)Recognition that risk is reduced by waiting to see how technology and customer requirements will shape the emerging industry
C)Trading off early mover advantages against the benefits of waiting to the point when an established firm's resources and capabilities can maximize their effectiveness
D)The potential to exploit network externalities in order to establish a dominant standard

Question

Quizplus · Accepted Answer

While being an early mover can provide advantages, it also carries risks and uncertainties. Waiting to enter the market allows the company to evaluate the technology and customer requirements, as well as competitors' strategies. The optimal time of entry needs to be determined by balancing the advantages of being an early mover against the benefits of waiting until the company's resources and capabilities can be maximized for optimal effectiveness.

When Entering a New Product Market with an Innovative Product,an