What term describes a firm that responds to a competitive action a significant amount of time after the first mover and second mover have acted?

• A. First mover.
• B. Second mover.
• C. Late mover.
• D. Strategic mover.

Answer: (C)

Timing of competitive response is what this item tests. A firm that waits a significant amount of time after the first and second movers have acted is a late mover. The idea is that late movers observe what happened, learn from the outcomes, and enter with adjustments or an improved approach, often at lower risk or cost than the early entrants. They can exploit residual demand, avoid early missteps, and price or position themselves based on how the market has already evolved. But waiting too long can mean losing market share, failing to achieve scale, or facing a more entrenched competitive position. This contrasts with a first mover, which acts first to establish advantage, and a second mover, which responds relatively soon after the first mover. A strategic mover is broader and not specifically defined by the timing of the response.