Many people dream of opening their own restaurant someday and restaurant supply houses provide easy finance options for equipment purchases.Also,a high growth is projected for the restaurant industry sector.According to Porter's five-force model,this is one of the reasons why the _____ in this industry is so high.

Question

Quizplus · Accepted Answer

Porter's five-force model suggests that threat of potential entrants is high when there are low barriers to entry and attractive growth opportunities. In the case of the restaurant industry, a high growth is projected, making it an attractive industry for new entrants. This increases competition and makes it difficult for existing players to sustain their business, leading to a high failure rate. However, it does not necessarily affect exit barriers or technological breakthroughs in the industry.

Many People Dream of Opening Their Own Restaurant Someday and Restaurant