Which of the following terms best describes a phenomenon whereby,despite equal innovative capabilities,an entrant is willing to spend more to develop an innovation?
A)The replacement effect
B)Strategic intent
C)Strategic stretch
D)Hypercompetition
E)The sunk cost effect

Question

Quizplus · Accepted Answer

The replacement effect describes a situation where an entrant (new competitor) is willing to spend more on innovation than an incumbent (established company) because the entrant has more to gain. The entrant's innovation could potentially replace the incumbent's existing products or services, thus the entrant values the innovation more highly.

Which of the Following Terms Best Describes a Phenomenon Whereby,despite