New firms' business models cannot be imitated quickly by incumbents because of tradeoffs with value-chain activities that are essential to the incumbents.

Question

Quizplus · Accepted Answer

New firms often introduce innovative business models that disrupt existing industries. However, incumbents may find it difficult to quickly imitate these business models due to tradeoffs with their existing value-chain activities, which may be essential to their current operations. This can create a barrier to entry for new firms and provide a competitive advantage for incumbents.

New Firms' Business Models Cannot Be Imitated Quickly by Incumbents