Which one of the following does not intensify the competitive pressures associated with the threat of entry?
A) When incumbent firms are unable or unwilling to launch competitive initiatives to strongly contest the entry of newcomers
B) When industry members are struggling to earn good profits
C) When entry barriers are relatively low and buyer demand for the product is growing fairly rapidly
D) When existing industry members are looking to expand their market reach by entering product segments or geographic areas where they currently do not have a presence
E) When newcomers can expect to earn attractive profits and a number of outsiders have the expertise and resources to hurdle whatever entry barriers exist

Question

Quizplus · Accepted Answer

Option B states that industry members are struggling to earn good profits, which implies that there is already intense competition in the industry, reducing the effectiveness of the threat of entry. The other options all suggest factors that increase the intensity of competitive pressures associated with the threat of entry.

Which One of the Following Does Not Intensify the Competitive