Several factors influence the threat from new entrants including economies of scale, brand identity, and ________.
A) switching costs
B) buyer volume
C) price sensitivity
D) supplier concentration

Question

Quizplus · Accepted Answer

Switching costs are expenses that customers incur when they switch from one supplier to another. High switching costs can act as a barrier to entry for new competitors as customers are less likely to switch from established firms due to the additional costs.

Several Factors Influence the Threat from New Entrants Including Economies