Which of the Porter's five-forces is most closely associated with the concept "barrier to entry"?
A) bargaining power of suppliers
B) rivalry among existing firms
C) threat of new entrants
D) bargaining power of buyers
E) threat of substitutes

Question

Quizplus · Accepted Answer

The concept of "barrier to entry" refers to the obstacles or challenges that prevent new firms from entering an industry. The force that most closely relates to this concept is the "threat of new entrants" because it examines the likelihood of new firms being able to enter an industry and compete with existing firms. If the threat of new entrants is low, it suggests that there are significant barriers to entry and that existing firms are not facing much competition from new firms. Therefore, option C is the most appropriate answer.

Which of the Porter's Five-Forces Is Most Closely Associated with the Concept