The threat of new entrants
A) If low diminishes the attractiveness of a category
B) Leads to higher profits and lower competitiveness
C) Can be reduced by erecting barriers to competition
D) Cannot be diminished by legal means
E) Helps a market to expand in the later stages of market development

Question

Quizplus · Accepted Answer

The threat of new entrants can indeed be reduced by erecting barriers to competition, such as patents, high capital requirements, or strong brand loyalty, which make it harder for new competitors to enter the market.

The Threat of New Entrants