Question

When a dominant firm quickly copies the new product innovation of a smaller firm so that it is the next firm to make the innovation, it is following a:_____.
a. start-up strategy.
b. retained earning strategy.
c. fast-second strategy.
d. venture capital strategy.

Answer 1

Answer:

c. Fast-second strategy

Explanation:

Fast-second strategy is when a firm goes to a market place and find what is working therein(fast moving product), hence find a better way of making such product and return back to the market place with the improved product at an increased price.

The idea of innovation basically is to bring change that adds value but such word has now turn to a call in action which inspire firms to look for a fast moving product in the market place and then work on it to making it better.

Fast-second strategy is based on the idea that one can create a better product out of the offering of the pioneer hence carries lesser risk than being the first producer. An example is cars built by Henry Ford, though not the pioneer of classic cars, but he saw a huge market in car manufacturing hence worked towards making the process of making cars better and also brought cars to the masses.