Question

In many cases, pioneers lose their market lead and initial market share to imitators who:______.
a. capitalize on the pioneers' weaknesses.
b. create similar products with reduced value to consumers.
c. utilize alpha-beta testing.
d. ignore patents and copyrights.
e. target late maturity consumers.

Answer 1

Answer: Option A

Explanation:

The pioneers loose their first mover advantage when the imitators produce similar products at lower price than the pioneers. The imitators try to tap the weakness of the pioneers such as price, high cost of production, procurement difficulties, obtaining raw materials, distribution channels, marketing campaign etc.

By utilizing the weakness of the pioneers the imitators produce the similar goods at an comparative advantage. They also try to capture the market share of the pioneers by making the pioneer's weakness their strength.