Question

Mighty Mike's, a manufacturer of power tools for the home hobbyist, has seen its main competitor, MyTools, bring out a line of power tools that are smaller sized, lighter weight, and suitable for women and older hobbyists who have weaker hands than the typical male workshop hobbyist. Mighty Mike is waiting to see whether MyTool's new line is a success. Mighty Mike could be classified as a second mover.

Answer 1

Mighty Mike's can be classified as a second mover in the power tools industry. This means they are waiting to see whether their competitor's new line of power tools is successful before entering the market with a similar offering.

Step-by-step explanation:

Mighty Mike's can be classified as a second mover in the power tools industry. In this context, a second mover refers to a company that waits to observe the success or failure of a competitor's new product before deciding whether to enter the market with a similar offering.

By waiting, Mighty Mike's benefits from the research and development investments made by MyTools. If MyTools' new line proves to be successful, Mighty Mike's can learn from their strategy and develop a competitive product that targets the same market segment of women and older hobbyists with weaker hands. This approach allows Mighty Mike's to reduce the risk associated with introducing a new product.

However, being a second mover also comes with some disadvantages. By entering the market later, Mighty Mike's is at a disadvantage in terms of capturing market share, brand recognition, and establishing a presence in the minds of consumers that MyTools has already gained through its initial launch.