Which of the following statements is true of a firm entering a market too early?
A) Distribution channels required for the firm's products will be well established prior to its entry.
B) Enabling technologies and complements available to the firm will be immature.
C) The firm's competitors would have already captured controlling shares of the market.
D) The firm will not be able to reap the advantages of monopoly rent.

Question

Quizplus · Accepted Answer

Entering a market too early means that the enabling technologies and complements required for the firm's products to succeed may not have reached maturity. As a result, the firm may find it difficult to operate in a market where customers are not yet accustomed to the product. Innovation is not enough; the market also needs to be ready to accept the new product.

Which of the Following Statements Is True of a Firm