A market segment's attractiveness varies with the height of its entry and exit barriers. Which of the following forces as described by Michael Porter would most likely be examined by a marketing manager in the case of the rise of retail giants such as Walmart?
A) threat of intense segment rivalry
B) threat of suppliers' growing bargaining power
C) threat of substitute products
D) threat of new entrants
E) threat of buyers' growing bargaining power

Question

Quizplus · Accepted Answer

The rise of retail giants such as Walmart increase the entry barriers for new entrants, since they have already established themselves in the market with significant market share and economies of scale. Therefore, the marketing manager would most likely examine the threat of new entrants to assess the market segment's attractiveness. This is in line with Porter's Five Forces model.

A Market Segment's Attractiveness Varies with the Height of Its