Question

Airbus pioneered the development of the new superjumbo jet at a cost of $15 billion. It quickly obtained contracts for much of the 400 units that are expected to be ordered in the next 20 years, thereby effectively shutting out its competitor, Boeing. Airbus benefits from ___________.

Answer 1

Answer:

First mover advantage

Explanation:

First-mover advantage is defined as the advantage or benefit gained through the initial occupant of the segment of market. The benefit or advantage might be gained through the leadership of technological or prior purchase of resources.

So, in this case, Airbus who developed the jet at the cost of $15 billion, and quickly the company obtain the contract which is expected to be ordered in next 20 years. Therefore, the Airbus benefits from the first mover benefit.