Market Evolution And Consumer Preferences Discussion Paper
A low-cost leader’s basis for competitive advantage is ( ) A. lowest possible prices for comparable products. B. a low-cost/moderate price approach to gain the biggest market share. C. high buyer switching costs. D. meaningful lower overall costs than rivals on comparable products. 9. First-mover advantages are unlikely to be present in which one of the following instances? ( ) A. when pioneering helps build a firm’s image and reputation with buyers B. 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 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 pre-emptive strike, making imitation extra hard or unlikely Market Evolution And Consumer Preferences Discussion Paper
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1st step
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Step 1/2
8.
Correct Answer:
D
Explanation:
A low-cost leader develops a competitive advantage when it offers lower prices while maintaining the quality of products and services. It is observed when compared with other comparable products. It helps low-cost leaders to capture a bigger market share and it delivers a competitive advantage Market Evolution And Consumer Preferences Discussion Paper.
So, the correct answer is alternative D.
Other alternatives are incorrect because they give wrong answer outcomes.
- Explanation for step 1
In this step, problem 8 is solved.
Step 2/2
9.
Correct Answer:
B
Explanation:
When there is a market evolution and consumer preferences, as well as technologies, are changing quickly, then it means that no firm can maintain a first-mover advantage as the market trend is changing. Every time a new firm comes with a new product to gain a competitive advantage and after some time, another firm comes with a superior product to leapfrog previous products. In this type of market, first mover advantage does not exist for long.
So, the correct answer is alternative B.
Other alternatives are incorrect because they give wrong answer outcomes.
- Explanation for step 2
In this step, problem 9 is solved.
Final answer
First mover advantage is lost when market is changing quickly and consumer preferences are dynamic in nature. So, no any single firm can rule the market as a first mover Market Evolution And Consumer Preferences Discussion Paper