According to Porter, threat of new entrants refers to ________.
A) the power that customers have over the firms
B) the power that suppliers have over the firms
C) the extent to which customers may use services from another industry instead of the focal industry
D) the ability of new firms to enter an industry
E) the intensity of competition among the organizations

Question

Quizplus · Accepted Answer

The threat of new entrants refers to the ease with which new firms can enter an industry. They can bring new competition, which can impact market share and profitability of existing firms. This factor is one of the five forces in Porter's Five Forces model, which examines the competitiveness of an industry.

According to Porter, Threat of New Entrants Refers to ________