First-mover advantages are unlikely to be present in which one of the following instances?

Question

A) When pioneering helps build a firm's image and reputation with buyers
B) When first-time customers remain strongly loyal to pioneering firms in making repeat purchases
C) When early commitments to new technologies, new-style components, new or emerging distribution channels, and so on can produce an absolute cost advantage over rivals
D) When moving first can constitute a preemptive strike, making imitation extra hard or unlikely
E) When rapid market evolution (due to fast-paced changes in technology or buyer preferences) presents opportunities to leapfrog a first-mover's products with more attractive next-version products

Answer 1

E) When rapid market evolution (due to fast-paced changes in technology or buyer preferences) presents opportunities to leapfrog a first-mover's products with more attractive next-version products
When rapid market evolution occurs, often involving furious technological change or product innovation, a first mover may become vulnerable to next-generation technology or products. Markets can be slow to accept the innovative product offering of a first mover, in which case a fast follower with substantial resources and marketing muscle can leapfrog a first mover.