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 amongst 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 suggest that Facebook has a first-mover advantage and is establishing brand loyalty, but risks incurring high costs associated with creating and marketing new products to maintain its industry leadership. This aligns with the concept of a first-mover advantage, where a company that is the first in a market has an initial advantage over competitors, but may face higher costs to maintain its position.

You Asked Your Stockbroker to Consider Buying Some Shares of Facebook