What are the advantages of a first-mover strategy? What are the best market conditions in which to use this strategy?
What will be an ideal response?
The advantages of a first mover strategy include:
? preempting competitive firms and capturing sales by establishing a strong brand name
? creating switching costs tying customers to your company’s products or services
? building sales volume that provides an experience curve and cost advantages over later market entrants
It is best to use the first mover strategy when there are little or no domestic competitors for the products and when the pioneering costs are relatively low.
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When attempting to identify the economic characteristics of the industry in which a particular firm participates an analyst might ask which of the following questions?
a. Does technological change play an important role in the firm maintaining a competitive advantage? b. Has the firm diversified across several geographic markets? c. Has the firm recognized revenues at the proper time? d. Has the firm structured transactions to make it look more profitable than economic conditions suggest?
A predictive analysis technique in which variables are used to predict the level of another by use of the straight-line formula, y= a + bx is:
A) chi-square B) Pearson correlation C) digression analysis D) regression analysis E) summarization analysis
A decrease in a liability is recorded by a debit
Indicate whether the statement is true or false
Clark is a soft drink salesperson who is enrolled in a vocational technology program that meets at night. From time to time, he takes off most of the day before his night class meets in order to prepare assignments that are due that evening. From an ethical standpoint, it is correct to say that Clark is:
A. moonlighting. B. cheating. C. guilty of misrepresentation. D. misusing company assets. E. acting quite ethically.