You asked your stockbroker to consider buying some shares of Facebook, Inc. for your investment account. But first you want to review the summary points in the SWOT analysis the stockbroker's firm did on the company. The following summary points were listed in the SWOT analysis: Facebook has a reputation as a market leader and it is quickly establishing a formidable brand loyalty among its users.
Because of its position in the industry, it risks incurring high costs associated with creating and marketing new products that are designed to perpetuate its industry leadership.
These summary points suggest
A) that Facebook's products are cash cows.
B) that Facebook has a first-mover advantage.
C) that Facebook's products are question marks.
D) that Facebook has a superior marketing strategy versus its peers.
E) that Facebook has a late-mover advantage.

Question

Quizplus · Accepted Answer

The summary points indicate that Facebook is a market leader with strong brand loyalty, suggesting a first-mover advantage in establishing its position in the industry.

You Asked Your Stockbroker to Consider Buying Some Shares of Facebook