Durall is a leading manufacturer of decorative crafts in Canada. Which of the following, if true, will indicate that the threat of new entrants is high for Durall?
A)Durall has a patent for its manufacturing process.
B)The crafts that Durall manufactures are low-priced.
C)The process of manufacturing the crafts is labor intensive.
D)The decorative crafts industry is capital intensive.

Question

Quizplus · Accepted Answer

Low-priced crafts suggest that the initial investment to start a similar business might be lower, making it easier for new entrants to compete with Durall.

Durall Is a Leading Manufacturer of Decorative Crafts in Canada