In the IO perspective it is important to enter an industry with
A)High barriers to entry
B)Differentiated products
C)Small number of competing firms of different sizes
D)All of the above

Question

In the IO perspective it is important to enter an industry with​
A)​High barriers to entry
B)Differentiated products
C)Small number of competing firms of different sizes
D)​All of the above

Quizplus · Accepted Answer

Entering an industry with high barriers to entry ensures that there are fewer new competitors who can enter the market easily, reducing the threat of new entrants. Producing differentiated products can help a firm stand out from its competitors and generate higher profits. Having a small number of competing firms of different sizes promotes healthy competition without creating a cut-throat environment. Thus, entering an industry with all of the above can be beneficial in the IO perspective.

In the IO Perspective It Is Important to Enter an Industry