Which of the following is an advantage offrrst movers?
A)They are not prone to mistakes.
B)They bear lower pioneering costs than later entrants do.
C)They only invest in the latest technology.
D)They do not run the risk of building the wrong resources as they are highly customer-focused.
E)They have an opportunity to exploit network effects and positive feedback loops.

Question

Quizplus · Accepted Answer

First movers have an opportunity to exploit network effects and positive feedback loops, meaning that the more they invest in establishing a dominant position, the harder it becomes for competitors to undermine their position. This can give the first mover a significant competitive advantage over later entrants in the market. Options A, C, and D are not accurate as first movers are not immune to mistakes, do not necessarily only invest in the latest technology, and can still build the wrong resources even with a customer-focused approach. Option B is partially correct as first movers often bear lower pioneering costs, but it is not the only advantage they have over later entrants.

Which of the Following Is an Advantage Offrrst Movers