Rio, a division of D&M Holdings Inc. was the first company to offer an MP3 player in 1998. It dominated the business due to its ability to innovate and enjoyed a competitive advantage since it was the first to offer the new technology and held a patent on the chip sets utilized in MP3 players. With regard to the MP3 player market, Rio possessed:
a. a first-mover advantage.
b. a late-mover advantage.
c. a market monopoly.
d. a strategic window.
Answer: a. a first-mover advantage.