Question

• 1.What are the advantages and disadvantages of being a first mover in entering a foreign market? Second mover? Fully explain. 2.Explain all pros and con of unmanned or autonomous ships for bulk shipping.

3. Evaluate the Danish maritime industry in light of Porter’s diamond. Evaluate the cruise industry in light of Porter’s diamond. Explain fully.

Answer 1

Q1.

Advantages:

1. Being first mover in foreign market gives a firm an opportunity to capure resources and gain control/access of strategic locations. This may be a production site, special economic zone sites.

2. As there is no competition thus one has the chance to capture huge customer base.

3. The firms gets the ability to showcase the products to the whole population i.e. it can relate the product to its brand which may also help in capturing customer base.

Disadvantages:

1. Settling business in a foreign market requires various costs like advertising, brand promotion, capital requirement, legal issues.

2. First mover has to search for better and efficient factors of production to minimise cost as later firms do not have to fight these issues as they can just tap in the already eastablished market.

answered by: anonymous