The threat of new entrants is high when all of the following are present except:
A) There is strong brand loyalty in the industry
B) There are large economies of scale
C) Distribution channels are hard to access
D) Incumbent firms are not aggressive in their response
E) Capital requirements are high

Question

Quizplus · Accepted Answer

Incumbent firms not being aggressive in their response makes it easier for new entrants to enter the market, thus increasing the threat of new entrants.

The Threat of New Entrants Is High When All of the Following