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Eureka Pizza is considering investing in new infrared oven technology that allows them to cook their pizzas faster and more completely. Because none of his competitors are making this investment, they will be a first mover. According to the text, what is the biggest issue with Eureka being a first mover?

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Answer:

The risk of being the first mover can be a few. The first and most important of all is the copy effect. Competitors, seeing the success the first mover is having, will try to copy and improve upon said new technique. Another one is that being the first mover is expensive since it is the first one to invest in new techniques. And, with that cost, comes the risk of losing investment in something that we can't know if it will make success because there's no history about it. We can mention regulatory resistance as well since depending on what new technique it is, it can be harder to obtain a regulatory license for it.

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