Question

1. Which is an example of a company that was a first mover in their market?

   • Gillette in razors
   • Hoover in vacuum cleaners
   • Coca Cola in carbonated soft drinks
   • All of the above

2. First movers are always the most successful.

   • True
   • False

3. Which is an example of a company discussed in the lecture who was a late mover but has now been more successful than the first movers?

   • Geico
   • Zantac
   • Sprint
   • Bass Pro Shop

4. One study showed that pioneers were more successful than late movers in just _____ of 50 product categories.

   • 15
   • 100
   • 28
   • 6

5. First mover advantage is comprised of:

   • Economies of scale
   • Economies of scope
   • Network effects
   • Learning effects
   • All of the above

6. Economies of scale means that the larger you are, the more your ______ per unit comes down.

   • numbers
   • unit
   • product
   • cost

7. Which of the following statements is TRUE about first-mover advantage?

   • It is difficult to maintain the advantage due to pioneering costs, imitation, complacency, etc.
   • First-mover advantage is easy to maintain.
   • First-movers are always successful.
   • All of the above.

Answer 1

Answer - Coco Cola in carbonated drinks

Explanation - Coca cola is an example of successful first mover is Coca Cola

Answer - False

Explanation - Some cases last movers are always the more successful than the fisrst movers

Answer - Zantac

Explanation - Zantac is a classic case study of successful late entering product.

Answer - 15

Explanation - Rest of the options are incorrect.

Answer - Economies of Scale

Explanation - The advantage of first movers include time to develop economies of scale - cost effecient ways of producing or delivering a product

Answer - Cost

Explanation - Economy of scale means proportionate saving in costs gained by an increase in the level of production

Answer - It is difficult to maintain the advantage due to pioneering costs, imitation, complacency, etc.

Explanation - Rest of the statements are false.