Chapter 5

Question 1

What are the 3 different entrants?

Answer 1

First movers, early followers and late entrants.

Question 2

What are the advantages for first movers?

Answer 2

Brand loyalty and Technological Leadership.
Preemption of Scarce Assets.
Exploiting Buyer Switching costs.
Reaping increasing returns advantages.

Question 3

What is meant by incumbent inertia?

Answer 3

The tendency for incumbents to be slow to respond
to changes in the industry environment due to their
large size, established routines, or prior strategic commitments to existing suppliers and customers.

Question 4

what are the disadvantages for first movers

Answer 4

Research and Development Expenses
Undeveloped Supply and Distribution Channels
Immature Enabling Technologies and Complements
Uncertainty of Customer Requirements