Regarding entry into a new market,which of the following is(are)true?
A)First movers gain expertise through participation.
B)First movers are not able to detect changes in the market.
C)First movers suffer a cost disadvantage.
D)First movers face more competitive rivalry.

Question

Quizplus · Accepted Answer

First movers gain expertise through participation, as they are able to learn the intricacies of the new market through trial and error. They are able to establish themselves as leaders and gain a competitive advantage over later entrants. B is false as first movers have an advantage of market knowledge and are able to adapt to changes in the market. C is false as first movers have the advantage of brand recognition and market share, and can usually charge higher prices. D is false as later entrants face a more competitive market as they try to establish themselves against established first movers.

Regarding Entry into a New Market,which of the Following Is(are)true