Which of the following is true of new entrants?
A) They have strong customer loyalty.
B) They will have records on customers' purchase habits.
C) They are yet to develop relationships with suppliers.
D) They can lock in suppliers to gain a competitive advantage.

Question

Quizplus · Accepted Answer

New entrants are yet to establish relationships with suppliers as they are just starting out in the market. They may not have the bargaining power to lock in suppliers to gain a competitive advantage. They also will not have records on the purchase habits of customers as they are just starting to operate in the market. Customer loyalty is not guaranteed for new entrants as they are unknown entities that customers may not be familiar with.

Which of the Following Is True of New Entrants