Answer all the questions below

The idea of renting high-end, expensive clothing through the Internet was a radical idea inspired by the use of technology in other rental businesses, such as Spotify and Airbnb. What is the most likely explanation as to why other existing fashion retailers didnt jump on this opportunity first?

Over time, well-established firms invest less and less in R&D and innovative uses of technology.

No one within the existing firms had the creative, entrepreneurial mind-set to see the potential for using technology in this way.

They assumed their customers werent ready to use technology in this way, so they didnt want to take a chance on investing in the model.

They were aware of the potential new use of technology, but felt that new entrants into the market using technology in this way would not pose a significant threat to their retail businesses.

Rent the Runway is considered a first mover because the firm was the first to use technology to rent, rather than sell, high-end fashion for women. The firm has created tremendous value by capitalizing on its innovative idea. Which of the following has NOT been a value-adding benefit of being a first mover?

The firm has accumulated valuable knowledge about product technology, process technology, and more.

The firms high volume of growth in rentals has allowed it to realize economies of scale.

Because it captured the market first, Rent the Runway has been able to steadily increase its sales volume.

The firm has developed a business model that will be hard for competitors to imitate.

Because it is entrepreneurial in nature, Rent the Runway is continuing to look for opportunities to exploit through innovation. Which of the following presents the best option for achieving its goals?

Acquiring one of its suppliers

Renting uniforms

Renting tuxedos for men

Forming more alliances with high-end fashion designers