When Galaxy Ventures, a real estate company, entered the low cost hous

QUESTION

When Galaxy Ventures, a real estate company, entered the low cost housing business, the market was already saturated with other players.

Thus, the company was forced to exit the market due to lack of customer loyalty and substantial dividends. Which of the following is a term used to described the situation faced by the company?
A. First-mover disadvantages

B. Last-mover disadvantages

C. Last-in first-out disadvantages

D. Comparative disadvantages

E. Absolute disadvantages

ANSWER

B
Late-mover disadvantages are the handicaps that late entrants might suffer. In the language of business strategy, early entrants into potential future economic stars may be able to reap substantial first-mover advantages, while late entrants may fall victim to late-mover disadvantages.