Business, 23.10.2021 16:40 bree249

Fashion Fair Corp., the first mover in the "all-year discount" stores market, lost its market share to a late entrant, Brand Fair Inc. Brand Fair operates online discount stores, which is cost-efficient when compared to investing in a brick-and-mortar store. Fashion Fair has been unable to replicate the online store business model because of its existing contracts with suppliers and heavy investment in retail stores. This ultimately leads to the failure of the business. Which of the following can be attributed to Fashion Fair’s failure? 1. A) Incumbent inertia
2. B) Use of tacit resources
3. C) Free-rider effect
4. D) Presence of low exit barriers

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Fashion Fair Corp., the first mover in the "all-year discount" stores market, lost its market share...

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