Consider the following statement: "A firm competing in an embryonic industry cannot afford to lose its...

Consider the following statement: "A firm competing in an embryonic industry cannot afford to lose its few customers, and so it should do everything it can to satisfy the needs of innovators." Do you agree or disagree, and why?

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Expert Solution

It is rather difficult to agree with the above statement owing to the fact that innovators possess a set of customer needs that sets it apart from that of any early majority that could be availed from the market. Embryonic market is a niche segment and hence the strategies supporting the same shall differ from the ones that needs to support the mass market. In addition, if the Organizations do not update their strategies, then the scope of losing the market share to the ones who adopt to such strategies, would be higher and hence unwarranted. Innovators, unlike early majority, understand the value of imperfections and hence attempt to seek the advantages from the same. Anything that is a cake-walk, is not the path for the innovators. They are approachable through some dedicated channels of distribution which may even include the word of mouth but mass media marketing. They do away with the part of price-sensitivity and ensure cost-leadership strategies so that they can come up with quality products at a reasonable price for its customers to afford to.

keosha answered 11 months ago

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