Question

WeShop4You has created a grocery delivery service that is unmatched by its competition. The value the company has created now makes it difficult to implement new ideas without spending more money than it originally took to start the business. This demonstrates the idea of___

Answer 1

Answer:

Diminishing Return

Explanation:

In order for  a company to conquer a market, it need to spent a lot of investment in structuring the fixed assets for production along with marketing expense to make the consumers aware about the quality of their product,

Making a change to the existing product, no matter how little could potentially force the company to pay additional money to re-structure its current fixed assets or additional marketing expense to educate the customers about the change.

For companies at the tippy top, the sacrifice that they do to make the chance often significantly larger compared to the additional value that they get from the change. This situation does not apply for companies who still in early age and still haven't establish their operation in the market.  

This is why the term is called diminishing return. The effect of investment for companies who just started tend to be larger compared to companies who are already established.