The force from the five forces model that considers economies of scale,initial capital requirements,cost advantages relevant to company size,and lack of brand loyalty is the:

Question

Quizplus · Accepted Answer

The force that considers economies of scale, initial capital requirements, cost advantages relevant to company size, and lack of brand loyalty is the "Threat of New Entrants." This force examines the barriers to entry that new businesses will face when attempting to enter the industry. If the barriers are low, then there is a greater threat of new businesses entering the industry, which will increase competition and lower profits. Therefore, the correct answer is B.

The Force from the Five Forces Model That Considers Economies