Question

When the laptop market overtook the desktop market, Blue Tech Inc., a leader in desktop technology, was left at a competitive disadvantage. Later, Blue Tech Inc.'s management channeled all of the company's efforts and revenue to develop an efficient laptop from scratch in less than a year. However, the company failed because most of its competitors had already been in the laptop market for five years. Blue Tech Inc's models were inferior to the ones in the market. In this scenario, Blue Tech Inc.'s failure can be best attributed to:

a) Strategic mismanagement
b) First-mover disadvantage
c) Technological incompetence
d) Market saturation

Answer 1

Blue Tech Inc.'s failure can be attributed to first-mover disadvantage.

Step-by-step explanation:

The failure of Blue Tech Inc. can be best attributed to first-mover disadvantage. Blue Tech Inc. was a leader in desktop technology, but when the laptop market overtook the desktop market, the company was left at a competitive disadvantage. Although Blue Tech Inc. made efforts to enter the laptop market, their competitors had already been in the market for five years and had superior laptop models.

Being a late entrant in the market resulted in Blue Tech Inc. facing challenges that led to their failure.