Which of the following is a first-mover advantage?
A) International firms may gain experience in that country's business practices.
B) An international firm can reap the rewards of growth in a new market without incurring the risks.
C) A firm may have the opportunity to be the first to introduce generic brands to a market.
D) A firm can gauge how well their product will do in the market without taking the risk of investing there.

Question

Quizplus · Accepted Answer

First-mover advantages are the advantages that accrue to early entrants into a market. By identifying and investing early in a country with high potential for future growth, international firms may build brand loyalty and gain experience in that country's business practices. These will pay back substantial dividends if that country achieves sustained high economic growth rates. For example, eBay was the first company to take the auction process online. Coca-Cola was the first cola producer, and began selling its product to the public in 1886; this has given it considerable advantage over competitors.

Which of the Following Is a First-Mover Advantage