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Managerial Economics 2nd Edition by William Boyes
Edition 2ISBN: 978-0618988624Managerial Economics 2nd Edition by William Boyes
Edition 2ISBN: 978-0618988624 Exercise 1
When would being first be a valuable strategy?
Explanation
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Economics:
Economics is the term, which have concerns regarding production, distribution, consumption, and transfer of wealth.
Determine why being first is a valuable strategy:
According to Person X, first mover makes the perfect footprint in the market and they can able to survive even if the demand declines. Most successful firms are the first movers who entered into the market segment when people expecting a product with the particular specification.
It will bring them a brand image for being the first firm to develop the market segment. It is equally important to upgrade the technology of the product. Being a first firm to introduce the product will create them a brand image. However, the companies, which enter into the segment later, would have the better technology and features. Thus, first mover should upgrade the product specification periodically to survive in the market.
Conclusion:
First mover has the equal advantages and disadvantages. The degree of risk will be high for the first mover firms. Choosing a production strategy would be a challenge for the company to produce the product, which the customers are expecting.
Economics is the term, which have concerns regarding production, distribution, consumption, and transfer of wealth.
Determine why being first is a valuable strategy:
According to Person X, first mover makes the perfect footprint in the market and they can able to survive even if the demand declines. Most successful firms are the first movers who entered into the market segment when people expecting a product with the particular specification.
It will bring them a brand image for being the first firm to develop the market segment. It is equally important to upgrade the technology of the product. Being a first firm to introduce the product will create them a brand image. However, the companies, which enter into the segment later, would have the better technology and features. Thus, first mover should upgrade the product specification periodically to survive in the market.
Conclusion:
First mover has the equal advantages and disadvantages. The degree of risk will be high for the first mover firms. Choosing a production strategy would be a challenge for the company to produce the product, which the customers are expecting.
Managerial Economics 2nd Edition by William Boyes
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