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Question
Fashion Fair, the first mover in the all year discount stores market, lost its market share to a late entrantBrand Fair. Brand Fair operated its discount stores solely over the Internet, which, in turn, saved a lot of expenses. However, Fashion Fair was unable to adopt the online store business model due to its existing contracts with suppliers and investment in a physical infrastructure. This is an example of:
a. incumbent inertia.
b. monopoly rents.
c. path dependency.
d. technology spillover.
Answer
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