Timing of Entry
10 important questions on Timing of Entry
What are the 4 first-mover advantages?
- Preemption of Scarce assets (key locations, government permits, access to distribution channels)
- Exploiting buyer switching costs
- Reaping increasing returns advantages
In which three categories are the entrants divided?
- Early followers/early leaders
- Late entrants
What is the advantage when you are a technology leader as first mover?
- Higher grades + faster learning
- Never study anything twice
- 100% sure, 100% understanding
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What is the meaning of monopoly rents?
What is the meaning of incumbent inertia?
Uncertainty of customer requirements can be a advantage as well, why?
What are factors which influence optimal timing of entry?
2. How much improvement does the innovation provide over previous solutions?
3. Does the innovation require enabling technologies, and are these technologies sufficiently mature?
4. Do complementary goods influence the value of the innovation, and are they sufficiently available?
5. How high is the threat of competitive entry?
6. Is the industry likely to experience increasing returns to adoption?
7. Can the firm withstand early losses?
8. Does the firm have resources to accelerate market acceptance?
9. Is the firm's reputation likely to reduce the uncertainty of customers, suppliers and distributors?
Why does a firm need fast-cycle development processes?
In essence, a firm with very fast development deployment processes should be able to take advantage of both first- and second-mover advantages.
What is the biggest disadvantage of many first movers?
When does a firm has the most options when it comes to timing?
The question on the page originate from the summary of the following study material:
- A unique study and practice tool
- Never study anything twice again
- Get the grades you hope for
- 100% sure, 100% understanding
