Question

Capricorn Creative Inc., a U.S.-based advertising firm, was the first in the advertising industry to identify the growth potential of Brazil and to make huge investments in its economy. As a result, the firm was able to build brand loyalty and gain experience in that country's business practices. In the language of business strategy, Capricorn Creative has typically benefited from:A. a first-mover advantage.B. forward integration.C. unrelated differentiation.D. lateral diversification.E. technology transfer

Answer 1

Answer:

A. -

Explanation:

First Mover Advantage (FMA) is a marketing or business strategy where the advantage is gained by the initial significant occupant of a market segment.

Capricorn creative inc. being the first to identify the potential in Brazil and make investments is now benefiting from brand loyalty amongst others. By being the first mover/initial they gained competitive advantage in what looks like a monopoly-like status.

It is important to note that not all first movers tho are rewarded. This occurs mostly if the first mover doesn't capitalize on its advantage. In this situation it then becomes first-mover disadvantage.