[amp_mcq option1=”first mover” option2=”fast follower” option3=”brand extender” option4=”alliances” correct=”option2″]
The correct answer is: B. fast follower.
A fast follower is a company that enters a market after the first mover has established a presence. Fast followers can benefit from the first mover’s investments in research and development, marketing, and distribution. They can also learn from the first mover’s mistakes and avoid them.
First movers are companies that enter a market before any other competitors. First movers can benefit from being the first to establish a brand name and customer base. However, they also face the risk of being copied by competitors.
Brand extenders are companies that expand their existing brands into new product categories. Brand extenders can benefit from the recognition and goodwill associated with their existing brands. However, they also face the risk of diluting the value of their brands.
Alliances are partnerships between two or more companies. Alliances can be used to share resources, enter new markets, or develop new products. However, alliances can also be difficult to manage and can lead to conflict between the partners.
In conclusion, the most common market entry strategy for existing firms is to be a fast follower. Fast followers can benefit from the first mover’s investments and avoid their mistakes.