Firms that have either recently begun operations in an industry or that threaten to begin operations in an industry soon are considered to be ________ in the five forces framework.
A) barriers to entry
B) new competitors
C) suppliers
D) buyers

Question

Quizplus · Accepted Answer

Firms that have either recently begun operations in an industry or that threaten to begin operations in an industry soon are considered new competitors in the five forces framework. They are potential threats to existing firms in the industry as they can capture market share and reduce profits. Therefore, option B is the best choice for this question.

Firms That Have Either Recently Begun Operations in an Industry