The most attractive segment is one in which the entry barriers are low and exit barriers are high.

Question

Quizplus · Accepted Answer

The statement is contradictory. If entry barriers are low, it means it is easy for new competitors to enter the market, which can increase competition and make the segment less attractive. On the other hand, if exit barriers are high, it means it will be difficult for firms to exit the market, which can lead to losses and decrease attractiveness. Ideally, a segment with high entry barriers (to limit competition) and low exit barriers (to easily exit if necessary) would be the most attractive.

The Most Attractive Segment Is One in Which the Entry