When a dominant firm quickly copies the new product innovation of a smaller firm so that it is the next firm to make the innovation, it is following a
A) venture capital strategy.
B) retained earning strategy.
C) fast-second strategy.
D) start-up strategy.

Question

Quizplus · Accepted Answer

The fast-second strategy refers to the behavior of dominant firms of quickly imitating a new product innovation so that they become the next player to introduce it on the market, even if a smaller firm was the original innovator. This strategy can be successful for the dominant firm as it can utilize its resources and market power to quickly catch up to and potentially surpass the initial innovator.

When a Dominant Firm Quickly Copies the New Product Innovation