Question

When Galaxy Ventures, a real estate company, entered the low cost housing business, the market was already saturated with other players. Thus, the company was forced to exit the market due to lack of customer loyalty and substantial dividends. Which of the following is a term used to described the situation faced by the company?a. first-mover disadvantages

b. last-mover disadvantages
c. last-in first-out disadvantages
d. comparative disadvantages
e. absolute disadvantages

Answer 1

b. last-mover disadvantages

Step-by-step explanation:

Last-mover or late-mover disadvantages describes the situation faced by Galaxy Ventures, a real estate company, that entered the low cost housing business when the market was already saturated with other players.

Thus, forcing Galaxy Ventures to exit the market due to lack of customer loyalty and substantial dividends.