Which of the following is true of first movers? a. The first mover cannot be able to establish brand loyalty. b. Being a first mover guarantees instant success. c. The first mover cannot create switching costs for its customers to deter rivals. d. The first mover that creates a revolutionary product is in a monopoly position. e. The first mover has no opportunity to exploit network effects and positive feedback loops.

Question

Business

Darius Kemp

19 January, 10:48

Which of the following is true of first movers? a. The first mover cannot be able to establish brand loyalty. b. Being a first mover guarantees instant success. c. The first mover cannot create switching costs for its customers to deter rivals. d. The first mover that creates a revolutionary product is in a monopoly position. e. The first mover has no opportunity to exploit network effects and positive feedback loops.

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Matteo Parks · Answer 1

The first mover that creates a revolutionary product is in a monopoly position.

Explanation:

First Mover is the big initiator of a new product, which gains a competitive 'first mover advantage' for being the pioneer of the idea in the market.

The first mover can be able to establish brand loyalty Being a first mover doesn't guarantee instant success The first mover can create switching costs for its customers to deter rivals.

The only apt statement is : The first mover that creates a revolutionary product is in a monopoly position. The first mover enters the market when there is no major supplier & the customer's demand is unmet. If it enables to leverage the potential huge unsatisfied market in a revolutionary way, it can be able to create unparalleled brand loyalty. And this can make it secure monopoly position in market