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 buyers have a high degree of loyalty to the brands and product offerings of existing industry members
C) When buyer demand for the product is growing fairly slowly
D) When few outsiders have the expertise and resources to hurdle whatever entry barriers exist
E) When newcomers can expect to earn attractive profits

Question

Quizplus · Accepted Answer

When newcomers can expect to earn attractive profits, it increases the competitive pressures associated with the threat of entry, as it attracts more potential entrants to the market.

Which One of the Following Increases the Competitive Pressures Associated