A "fast-second strategy" means that a dominant firm in an industry
A)uses just-in-time inventory control methods to speed production.
B)cuts the development time for the introduction of a new product.
C)lets smaller firms initiate new products and then quickly imitates the success.
D)merges with the second largest firm in the industry to gain a larger market share.

Question

Quizplus · Accepted Answer

A fast-second strategy involves a dominant firm allowing smaller firms to take the initial risks of introducing new products. Once these products prove successful, the dominant firm quickly imitates them, leveraging its larger resources and market presence to capture significant market share. This strategy reduces the risk and R&D costs for the dominant firm by capitalizing on the pioneering work of smaller competitors.

A "Fast-Second Strategy" Means That a Dominant Firm in an Industry