The chief disadvantage of being a first mover is the:
A) High degree of risk
B) High level of competition in the new marketplace
C) Inability to earn above-average returns unless the production process is very efficient
D) Difficulty of obtaining new customers

Question

Quizplus · Accepted Answer

The chief disadvantage of being a first mover is the high degree of risk involved. As a first mover, a firm is essentially entering into uncharted territory, with no guarantee of success. The firm will also incur significant costs and investments in developing new products, services, or technologies. As a result, there is a greater risk of failure, which can be detrimental to the firm's financial health in the long run.

The Chief Disadvantage of Being a First Mover Is The