Substantial switching costs reduce the threat of potential entry.

Name: Substantial switching costs reduce the threat of potential entry.
Brand: Quizplus
Rating: 4.9 (49 reviews)

Question

Quizplus · Accepted Answer

If potential entrants face high switching costs when they enter a market, they will be less likely to do so. This is because the costs of switching to a new market can be significant, making it difficult for new firms to compete with existing companies. Therefore, substantial switching costs reduce the threat of potential entry.

Substantial Switching Costs Reduce the Threat of Potential Entry