Final answer:
The concept that the initial company in a market likely becomes the market leader is known as first-mover advantage, allowing the establishment of brand loyalty and market share ahead of others.
Step-by-step explanation:
The belief that the first company to enter a market has the best chance of becoming the market leader is referred to as first-mover advantage. This concept suggests that the initial entrant in a market segment can establish a strong brand, customer loyalty, and a higher market share before other competitors enter the field. In monopoly and competitive markets, being the first means setting standards and creating barriers to entry such as a well-respected brand name, technological lead, or a particular cost advantage. Another hypothetical advantage, cited as an opposite, is the first-mover disadvantage when entering first does not lead to such positive results, often due to the high costs of pioneering a new market.