Question

Brew-at-home is entering a foreign market and is spending significant funds on educating customers about the benefits of making beer at home with its beer-making system. The cost the company is spending on education is a type of __________ cost.

Answer 1

The cost the company is spending on education is a type of Pioneering cost.

What are the expenses of progressing?

Investment costs Pioneering expenses happen when a company must spend a lot of time, money, and effort learning the game since the international business system is so different from the native market.

What does the Pioneer method entail?

A pioneer strategy necessitates additional funding and R&D assets. A follower strategy suggests strong marketing and production capabilities. This is crucial when allocating finite resources. The understanding of internal resources and competencies forms the first pillar of strategic analysis.

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