What is Lead Time?
- Lead time is a period of time between when an invention is discovered and when rivals learn how to manufacture it.
How Do I Remember It?
- Think of lead time as the “head start” a company has in producing a new invention. It’s like the advantage gained by being the first to discover and manufacture a new product before competitors can catch up.
Real World Example
- For example, when Apple introduced the first iPhone in 2007, it had a significant lead time over its competitors. Apple had spent years developing the technology and design of the iPhone, giving it a head start in the market. Competitors had to learn how to manufacture similar smartphones, which took time, allowing Apple to establish itself as a leader in the smartphone industry.
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By: Ryan Aquino
