Which one of the following does not intensify the competitive pressures associated with the threat of entry?
A)Incumbent firms are unable or unwilling to launch competitive initiatives to strongly contest the entry of newcomers.
B)Industry members are struggling to earn good profits.
C)Entry barriers are relatively low.
D)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)Newcomers can expect to earn attractive profits,and a number of outsiders have the expertise and resources to hurdle past whatever entry barriers exist.

Question

Quizplus · Accepted Answer

If industry members are struggling to earn good profits, then newcomers may not perceive the industry as attractive and may be less likely to enter, thereby reducing the threat of entry and competitive pressures. The other options would all intensify the threat of entry and increase competitive pressures.

Which One of the Following Does Not Intensify the Competitive