Which one of the following does not intensify the competitive pressures associated with the threat of entry?
A) When incumbent firms are unable or unwilling to launch competitive initiatives to strongly contest the entry of newcomers
B) When industry members are struggling to earn good profits
C) When entry barriers are relatively low
D) When existing industry members are looking to expand their market reach by entering product segments or geographic areas where they currently do not have a presence
E) When newcomers can expect to earn attractive profits and a number of outsiders have the expertise and resources to hurdle whatever entry barriers exist

Question

Quizplus · Accepted Answer

If industry members are struggling to earn good profits, it may actually reduce the competitive pressures associated with the threat of entry. This is because new entrants may also struggle to earn profits and may be less likely to enter the industry, reducing the threat of entry. The other options listed all increase competitive pressures associated with the threat of entry.

Which One of the Following Does Not Intensify the Competitive