Which of the following advantages of a pioneer is best reflected in the idea that the pioneer's actions set standards for quality,price,and post-sale service which subsequent entrants must either meet or beat?
A)Economies of scale
B)High switching costs
C)Distribution advantage
D)Defining the rules of the game

Question

Quizplus · Accepted Answer

Defining the rules of the game is the advantage best reflected in the statement. As a pioneer, the company establishes the standards for quality, price, and post-sale service, which later competitors must follow or improve upon to be successful in the market. This advantage is not related to economies of scale or distribution advantages, and although high switching costs may make it difficult for customers to switch to new competitors, it is not directly reflected in the statement.

Which of the Following Advantages of a Pioneer Is Best