Which statement correctly describes a First Mover?

Which statement correctly describes a First Mover?

• A. The firm that imitates first mover.
• B. Late entrants that delay action.
• C. a firm that takes an initial competitive action in order to build or defend its competitive advantages, or to improve its market position.
• D. A firm that disrupts industry with radical innovation.

Answer: (C)

First movers are firms that take the initial competitive action to build or defend their competitive advantages, or to improve their market position. By acting first, they aim to shape the market, establish brand recognition, lock in customers, and create barriers such as preemptive access to scarce resources or higher switching costs for rivals. This captures the idea of being first to move in a way that creates a lasting position, rather than simply copying others, delaying action, or focusing solely on radical disruption. The choice that describes this best states that a first mover is a firm that takes an initial competitive action to build or defend its advantages or to improve its market position. The other descriptions point to different roles: imitating a first mover (a follower), late entrants who delay action (also late entrants), or a firm that disrupts the industry with radical innovation (a disruptor, not the timing of the action).

First movers are firms that take the initial competitive action to build or defend their competitive advantages, or to improve their market position. By acting first, they aim to shape the market, establish brand recognition, lock in customers, and create barriers such as preemptive access to scarce resources or higher switching costs for rivals. This captures the idea of being first to move in a way that creates a lasting position, rather than simply copying others, delaying action, or focusing solely on radical disruption.

The choice that describes this best states that a first mover is a firm that takes an initial competitive action to build or defend its advantages or to improve its market position. The other descriptions point to different roles: imitating a first mover (a follower), late entrants who delay action (also late entrants), or a firm that disrupts the industry with radical innovation (a disruptor, not the timing of the action).