A "fast-second strategy" means that a dominant firm in an industry
A) uses just-in-time inventory control methods to speed production.
B) cuts the development time for the introduction of a new product.
C) lets smaller firms initiate new products and then quickly imitates the success.
D) merges with the second largest firm in the industry to gain a larger market share.

Question

Quizplus · Accepted Answer

A "fast-second strategy" involves letting smaller firms in the industry take the initial risk of introducing a new product or service, and then quickly imitating their success by improving upon the idea or making it more efficient. This allows the dominant firm to not waste resources on initial research and development, and instead leapfrog over the competition by learning from their mistakes and improving upon their successes.

A "Fast-Second Strategy" Means That a Dominant Firm in an Industry