What describes 'first mover advantage'?

'First mover advantage' refers to the competitive advantage that a company can gain by being the first to enter a particular market or industry. This concept is based on the idea that the initial entrant has the opportunity to establish strong brand recognition, build customer loyalty, and secure valuable resources or distribution channels before competitors enter the market.

Being the first mover allows a company to set the standards for the industry and gain a significant market share, which can lead to long-term profitability. Early entry can also deter other competitors from entering the market due to perceived risks or the established presence of the first mover.

The other options highlight different concepts. Following industry trends might benefit later entrants but doesn't capture the essence of being the first. A larger workforce can provide certain advantages but is not directly related to the timing of market entry. Rewards for increasing marketing spend focus on promotional strategies rather than the strategic timing of entering a market. Therefore, the definition of 'first mover advantage' aligns closely with the benefits of being the first to enter a market.