Question

Often, successful imitation of the first mover's innovations allows the second mover to avoid the mistakes and major investments of the first mover.

Answer 1

Successful imitation by second movers allows them to avoid the mistakes and major investments made by the first mover.

Step-by-step explanation:

In the context of business, when a firm introduces a new innovation or enters a market first, it is referred to as the 'first mover.' Other firms that imitate or follow the first mover are called 'second movers.' It is often observed that successful imitation by second movers allows them to avoid the mistakes and major investments made by the first mover. For example, if a gas station innovates by adding a car wash, the second mover can learn from their mistakes and make improvements. This concept is important in understanding market competition and how firms strategize to gain an advantage.