The threat of new entrants is greater when there are no switching costs.

Name: The threat of new entrants is greater when there are no switching costs.
Brand: Quizplus
Rating: 4.8 (42 reviews)

Question

Quizplus · Accepted Answer

When there are no switching costs, it is easier for new entrants to enter the market as customers can easily switch to the new entrant's product or service without incurring any additional costs or hassles. This increases the threat of new entrants for existing players in the market.

The Threat of New Entrants Is Greater When There Are