Which of the Following Is a Disadvantage of First Movers

Multiple Choice

Which of the following is a disadvantage of first movers?

A) They cannot establish significant brand loyalty due to high costs.
B) They cannot create switching costs for their customers, thus making it difficult to enter the market.
C) They decrease sales volume compared to their rivals, and thus operate at a loss.
D) They run the risk of building the wrong resources and capabilities.
E) They do not have the power to exploit network effects and positive feedback loops.