A price-cutting strategy will always keep potential entrants from entering the industry.

Question

Quizplus · Accepted Answer

A price-cutting strategy can be effective in deterring potential entrants in the short term, but it is not a foolproof way to prevent new competitors from entering the industry. Competitors may still enter the industry with their own cost-cutting measures or through differentiation strategies. Additionally, sustained price-cutting can negatively impact a company's profitability and ultimately make it less attractive to potential entrants.

A Price-Cutting Strategy Will Always Keep Potential Entrants from Entering