Question

Omega, Inc., a maker of personal fitness trackers (like Fitbit) was the first mover into the country of Malnesia. As the first mover in a new product area, Omega, Inc. had to spend a lot of money educating the population of Malnesia about fitness and tracking one's fitness. In addition, they also had to spend money in developing a distribution channel. The costs that Omega, Inc. incurred in Malnesia as the first mover are called _________

Answer 1

Answer:

The correct answer that fills the gap is: pioneering costs.

Explanation:

After the identification of the market comes what is the moment of penetration. Care must be taken with early entry into a national market, since the pioneer costs that the first participants must bear, including the increased risk of business failure, must be taken into account.