Each of the following parts describes a firm that was an early mover in its mark

Question

Each of the following parts describes a firm that was an early mover in its market. In light of the information provided, indicate whether the firm’s position as an early mover is likely to be the basis of a sustainable competitive advantage, and explain why or why not. (2 points: 1 point each) 1) A bank has issued the largest number of ATM cards in a large urban area. Banks view their ability to offer ATM cards as an important part of their battle for depositors, and in this market a customer’s ATM card for one bank does not work on the ATM systems of competing banks.

Explanation / Answer

Yes, here the bank experience sustainable competitive advantage ( it is the ability, asset or an attribute that makes it superior from other firms ) . As we can see here the bank is successful in issuing largest number of ATM and it does not work on ATM system of competing banks that makes competition difficult for other banks. As here the customers who have taken ATM of XYZ bank have to visit and deposit money in the same bank and cannot visit another bank for depositing or using ATM. Thus giving XYZ banks an upperhand over other banks.

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