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The Competitive Threat That Outsiders Will Enter a Market Is

Question 22

Multiple Choice

The competitive threat that outsiders will enter a market is weaker when:


A) financially strong incumbents send strong signals that they will launch strategic initiatives to combat the entry of newcomers.
B) the industry is characterized by the lack of sizable scale economies and learning/experience curve effects.
C) the industry's market growth is rapid.
D) the capital requirements for entering the market are within acceptable levels to provide acceptable returns on investment.
E) buyers have little loyalty to the brands and product offerings of existing industry members.

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