Which of the following does not usually function as an entry barrier?
A) Economies of scale
B) High strategic stakes
C) Product differentiation
D) Switching costs
E) Access to distribution channels

Question

Quizplus · Accepted Answer

High strategic stakes do not usually function as an entry barrier because they generally attract new entrants instead of deterring them. High strategic stakes refer to industries or markets with significant profit potential, which makes them more attractive to potential new entrants rather than acting as a deterrent. Other factors such as economies of scale, product differentiation, switching costs, and access to distribution channels are commonly used as entry barriers to prevent potential new entrants from gaining a foothold in the market.

Which of the Following Does Not Usually Function as an Entry