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. However, Rio stopped producing MP3 players in 2005 and found that they could no longer compete effectively against Apple whose iPod became the most widely adopted MP3 player and transformed the industry. Apple possesses a(n) ___________ advantage while Rio enjoyed a(n) ___________ advantage.

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. However, Rio stopped producing MP3 players in 2005 and found that they could no longer compete effectively against Apple whose iPod became the most widely adopted MP3 player and transformed the industry. Apple possesses a(n) ___________ advantage while Rio enjoyed a(n) ___________ advantage.

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. However, Rio stopped producing MP3 players in 2005 and found that they could no longer compete effectively against Apple whose iPod became the most widely adopted MP3 player and transformed the industry. Apple possesses a(n) ___________ advantage while Rio enjoyed a(n) ___________ advantage.


a. late-mover; first-mover

b. first-mover; late-mover

c. sustainable; unsustainable

d. economic; technological


Answer: a. late-mover; first-move


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