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

This is known as a fast-second strategy, where a dominant firm leverages its resources and capabilities to quickly follow up on an innovation introduced by a smaller firm, thereby capitalizing on the innovation without bearing the initial development risks and costs.

When a Dominant Firm Quickly Copies the New Product Innovation