The likelihood of new entrants joining an industry is low if access to distribution channels is limited because:
A) new entrants struggle to match incumbents' prices.
B) this discourages customers from buying a new entrant's offerings.
C) new entrants struggle to gather enough cash to get started.
D) each incumbent has a group of loyal customers that enjoy its unique features.
E) new entrants struggle to get their offerings to customers.

Question

Quizplus · Accepted Answer

Limited access to distribution channels makes it difficult for new entrants to deliver their products to customers, reducing their ability to compete effectively.

The Likelihood of New Entrants Joining an Industry Is Low