Which of the following is a late-mover advantage?

Which of the following is a late-mover advantage?

• A. Proprietary technology
• B. Early access to scarce resources
• C. Ability to adapt quickly to market changes
• D. Establishment of entry barriers

Answer: (C)

The concept of late-mover advantage refers to the benefits that firms can gain by entering a market later than their competitors. One of the key late-mover advantages is the ability to adapt quickly to market changes. By observing the strategies, successes, and failures of earlier entrants, late-movers can gain valuable insights into consumer preferences, market dynamics, and operational efficiencies. This allows them to design products or services that are more aligned with current market needs, and they are often able to implement innovations or improvements based on the lessons learned from the initial market players. Furthermore, late entrants can leverage technological advancements that may have been developed after the market was established, leading to a more efficient entry approach. In contrast, proprietary technology and early access to scarce resources are typically associated with first-mover advantages, where firms that enter the market first can set the pace regarding innovation and resource acquisition. The establishment of entry barriers is more about how early movers can create challenges for later entrants rather than a direct advantage for those entering later in the game. Thus, the ability to adapt quickly to market changes represents a true advantage for late-movers, enabling them to capture market share effectively after learning from the experiences of others.

The concept of late-mover advantage refers to the benefits that firms can gain by entering a market later than their competitors. One of the key late-mover advantages is the ability to adapt quickly to market changes.

By observing the strategies, successes, and failures of earlier entrants, late-movers can gain valuable insights into consumer preferences, market dynamics, and operational efficiencies. This allows them to design products or services that are more aligned with current market needs, and they are often able to implement innovations or improvements based on the lessons learned from the initial market players. Furthermore, late entrants can leverage technological advancements that may have been developed after the market was established, leading to a more efficient entry approach.

In contrast, proprietary technology and early access to scarce resources are typically associated with first-mover advantages, where firms that enter the market first can set the pace regarding innovation and resource acquisition. The establishment of entry barriers is more about how early movers can create challenges for later entrants rather than a direct advantage for those entering later in the game. Thus, the ability to adapt quickly to market changes represents a true advantage for late-movers, enabling them to capture market share effectively after learning from the experiences of others.