Low capital requirements, cost advantages that are not related to company size, and the lack of brand loyalty are considerations regarding the ________.
A)threat of new entrants to the industry
B)threat of substitute products
C)bargaining power of buyers
D)rivalry among companies competing in the industry

Question

Quizplus · Accepted Answer

Low capital requirements make it easier for new entrants to join the industry, posing a threat to existing companies. Cost advantages that are not related to company size, such as technology or expertise, can also lower barriers to entry. Moreover, the lack of brand loyalty makes it easier for customers to switch to new entrants. These factors all contribute to the threat of new entrants.

Low Capital Requirements, Cost Advantages That Are Not Related to Company