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First movers typically establish strong brand recognition and customer loyalty. The advantages of first movers include time to develop economies of scale?cost-efficient ways of producing or delivering a product.
The innovation process begins with an idea. The idea is often presented in terms of abstract concepts or as findings derived from basic research.
Which of the following is a feature of the shakeout phase of the industry life cycle? Competitive intensity within the industry increases.
Shakeout: characterized by slowing growth, intense competition, declining profitability, and a focus on cost reduction.
The shakeout phase is when companies in the market gain more strength over their competitors. Often, the weaker competitors may go down in the market or close altogether because of the inability to grow or negative cash flow.