a firm that is first to the market with a new product frequently discovers that there are design flaws or problems with the product that were not anticipated. for example, the ballpoint pens made by the reynolds international pen company often leaked. what effect do these problems have on the innovating firm, and how do these unexpected problems open up possibilities for other firms to enter the market?

Since the firm is the first people to the market, the only thing people could buy from in the market is from the only firm in the market.

If the only firm ion the market has flaws in their products, then people would not buy their product(s), due to the fact that they have problems in their problems. These problems would make the firm not look so good to customers/consumers. Since they're the first, they would be making a "first impression" to it's consumers, and they didn't make a good first impression.

This would allow other firms to enter the market with products that don't have any problems/flaws. If other firms join the market and make products that don't have any problems, then people would choose them over the first firm, due to the fact that the other firms don't have problems with their products. This also allows firms to see what the problem was in the first firm in order to not make the same mistake, specifically by making solutions to those problems in their own products.

decentralization can the employees to get more involved in the business decision making