Which of the following is NOT considered an advantage of being a first-mover in a market?

• A. Ability to establish strong brand recognition
• B. Securing access to scarce resources
• C. Facing higher initial costs and risks
• D. Opportunity to set industry standards

Answer: (C)

Verified step by step guidance

1. Step 1: Understand the concept of a first-mover advantage. This refers to the benefits a company gains by being the first to enter a new market or industry.
2. Step 2: Identify common advantages of being a first-mover, such as the ability to establish strong brand recognition, securing access to scarce resources, and the opportunity to set industry standards.
3. Step 3: Recognize that while first-movers gain advantages, they also face challenges like higher initial costs and risks, which are disadvantages rather than advantages.
4. Step 4: Compare each option given in the problem to the known advantages and disadvantages of first-movers to determine which one does not fit as an advantage.
5. Step 5: Conclude that 'Facing higher initial costs and risks' is not an advantage but a disadvantage, making it the correct answer to the question.