Factors that reduce the threat of entry by new rivals into an industry include ______________.
A) scale economies of incumbent firms
B) customer switching costs
C) government restrictions
D) incumbent firms' marketing and distribution advantages
E) All of these

Question

Quizplus · Accepted Answer

All of these factors can reduce the threat of entry by new rivals into an industry. Scale economies of incumbent firms make it difficult for new firms to achieve similar levels of efficiency and cost effectiveness. Customer switching costs make it hard for new firms to attract and retain customers. Government restrictions can limit access to certain markets, and incumbent firms' marketing and distribution advantages create barriers to entry.

Factors That Reduce the Threat of Entry by New Rivals