When microwave ovens were first introduced, they posed a potential threat to conventional oven producers. But the effect of microwaves on the sales of conventional ovens has been minimal; in fact, most homes today utilize both appliances. Oven technology has not advanced much lately and industry profits are flat. Based on this information,
A) The threat of new entrants for either type of oven is high.
B) The threat of competitive rivalry for either type of oven is high.
C) The threat of new entrants for either type of oven is low.
D) The threat of substitutes for either type of oven is high.
E) The regulatory influence on these ovens is high and changing.

Question

Quizplus · Accepted Answer

The threat of new entrants is likely low in this scenario primarily because industry profits are flat and there has not been a substantial technology breakthrough that might induce new competitors to enter.

When Microwave Ovens Were First Introduced, They Posed a Potential