A benefit of being a second mover is:
A)the absence of the need to be the largest firm in the industry
B)that a firm may be able to respond to first movers' competitive actions without the same risks and development costs
C)the absence of any risk
D)the ability to lead the industry into new areas of product development and gain customer loyalty from its move

Question

Quizplus · Accepted Answer

Being a second mover allows a firm to observe and learn from the mistakes and successes of the first mover, thereby reducing the risks and development costs associated with introducing a new product or service. The second mover can also respond to the competitive actions of the first mover with a well-informed strategy. However, being a second mover does not mean that there is no risk involved, and it does not necessarily guarantee success in leading the industry into new areas of development or gaining customer loyalty.

A Benefit of Being a Second Mover Is