Which term describes firms that respond to the first mover's competitive action, typically through imitation?

• A. Firms who respond to the first mover's competitive action, typically through imitation.
• B. A firm that initiates the first competitive action.
• C. Late entrants that delay action.
• D. A firm that disrupts the market.

Answer: (A)

The main idea here is second movers—firms that watch the first mover and then respond, often by imitation. These fast followers sidestep the high risks and costs of being first, instead leveraging the leader’s market insights, customer feedback, and established demand to capture value with quicker, lower-risk execution. That’s why this option fits best: it describes firms that respond to the first mover’s action, typically through imitation.

The other statements describe the initiator, someone who delays, or a disruptor, none of which capture the reactive, imitation-based role of the firms in question.