Which one of the following increases the competitive pressures associated with the threat of entry?
A) When incumbent firms are likely to launch competitive initiatives to strongly contest the entry of newcomers
B) When strong brand preference and a high degree of customer loyalty exists for the product offerings of incumbents
C) When buyer demand for the product is growing fairly slowly
D) When few outsiders have the expertise and financial resources and capabilities to hurdle whatever entry barriers exist
E) When new entrants can expect to earn attractive profits

Question

Quizplus · Accepted Answer

When new entrants can expect to earn attractive profits, it increases the competitive pressures as it attracts more firms to enter the market, thereby intensifying competition.

Which One of the Following Increases the Competitive Pressures Associated