The individual firm should invest substantial financial resources in trying to build a first-mover advantage,even if that means several years of losses before a new venture becomes profitable.

Question

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Individual firms should realize that it pays to invest substantial financial resources in trying to build a first-mover or early-mover advantage even if that means several years of losses before a new venture becomes profitable.The idea is to preempt the available demand,gain cost advantages related to volume,build an enduring brand ahead of later competitors,and,consequently,establish a long-term sustainable competitive advantage.

The Individual Firm Should Invest Substantial Financial Resources in Trying