When DEKA Research developed its IBOT wheelchair, it had to create its own ball bearing because no other company could supply it. What late mover advantage could be realized after other suppliers figured out how to create the ball bearings?
A) benefit from the ability to free ride on investments that the first mover makes in creating supply infrastructure and distribution channels
B) design of products that corrects the mistakes that the first mover made in meeting customer demand
C) leapfrogging ahead of the first mover's technology
D) benefit from the investments in R&D that the first mover has made

Question

Quizplus · Accepted Answer

DEKA Research had to create its own ball bearing because no other company could supply it. After other suppliers figured out how to create the ball bearings, DEKA Research could benefit from the ability to free ride on investments that the first mover makes in creating supply infrastructure and distribution channels.

When DEKA Research Developed Its IBOT Wheelchair, It Had to Create