Which of the following is true of first movers?
A) The first mover cannot be able to establish brand loyalty.
B) The first mover has no opportunity to exploit network effects and positive feedback loops.
C) The first mover cannot create switching costs for its customers to deter rivals.
D) The first mover that creates a revolutionary product is in a monopoly position.
E) Being a first mover guarantees instant success.

Question

Quizplus · Accepted Answer

If a first mover creates a revolutionary product, they may be in a monopoly position because they have no competition and have established a new market. However, this is not always guaranteed and depends on factors such as market demand and barriers to entry. The other options are incorrect as they do not apply to all first movers and may vary depending on the specific industry and product.

Which of the Following Is True of First Movers