Porter describes the threat of new entrants.Which of the following is not descriptive of the "threat of new entrants"?
A) depends on the presence of entry barriers
B) has a desire to gain market share
C) depends on the reaction of existing competitors
D) does not impact industry attractiveness
E) brings new capacity and substantial resources

Question

Quizplus · Accepted Answer

The threat of new entrants does impact industry attractiveness, as it can lower profitability and increase competition. The other choices are all descriptive of the threat of new entrants.

Porter Describes the Threat of New Entrants