In deciding when entering a new product market with an innovative product,an established company should be influenced mainly by :
A)The principle that early-mover advantage is the key to success in new markets
B)Reducing risk by waiting to see how technology and customer requirements will shape the emerging industry
C)Identifying the optimal tradeoff between early-mover and follower advantages such that the firm's resources and capabilities can be most effective
D)The potential to exploit network externalities in order to establish a dominant standard

Question

Quizplus · Accepted Answer

It is important for an established company to consider the optimal tradeoff between early-mover and follower advantages based on its resources and capabilities. This allows the company to effectively compete in the market and make the most of its strengths. Risk reduction by waiting to see how technology and customer requirements will shape the industry may lead to missed opportunities, while relying solely on early-mover advantage or network externalities can be risky and resource-intensive. Therefore, a thoughtful and strategic approach is necessary.

In Deciding When Entering a New Product Market with an Innovative