When Galaxy Ventures, a real estate company, entered the low-cost housing business, the market was already saturated with other players. Thus, the company was forced to exit the market due to lack of customer loyalty and substantial dividends. Galaxy Ventures was facing
A) first-mover disadvantages.
B) late-mover disadvantages.
C) last-in first-out disadvantages.
D) comparative disadvantages.
E) absolute disadvantages.

Question

Quizplus · Accepted Answer

Galaxy Ventures faced late-mover disadvantages because they entered a saturated market where existing players had already established customer loyalty and market share, making it difficult for new entrants to succeed.

When Galaxy Ventures, a Real Estate Company, Entered the Low-Cost