In what two ways can a company's reputation be a barrier to other companies entering its market?
A)It can keep customers loyal and reduce the cost of production.
B)It can create network effects and enhance efficiency gains.
C)It can keep customers loyal and intimidate rivals with the threat of being crushed.
D)It can enhance efficiency gains and trigger research and development.

Question

Quizplus · Accepted Answer

A company's reputation can create customer loyalty and intimidation towards entering rivals, as customers may not switch to a new or unknown brand and rivals may be hesitant to compete against a well-established and reputable brand.

In What Two Ways Can a Company's Reputation Be a Barrier