Even where imitation is possible,a firm may gain advantage from being the first to introduce an innovative product because of:
A) long-lasting brand-name recognition.
B) a time lag between innovation and imitation by rivals.
C) trade secrets that limit the ability of rivals to exactly imitate the product.
D) all of these.

Question

Quizplus · Accepted Answer

All of these reasons can give a first-mover advantage in introducing an innovative product. Long-lasting brand-name recognition can lead to higher customer loyalty and market share. A time lag between innovation and imitation by rivals can allow the first-mover to establish a foothold in the market and gain a competitive edge. Trade secrets can limit the ability of rivals to exactly imitate the product, which can protect the first-mover's market share and profitability.

Even Where Imitation Is Possible,a Firm May Gain Advantage from Being