Which one of the following increases the competitive pressures associated with the threat of entry?
A) Incumbent firms are likely to launch competitive initiatives to strongly contest the entry of newcomers.
B) Buyers have a high degree of loyalty to the brands and product offerings of existing industry members.
C) Buyer demand for the product is growing fairly slowly.
D) Few outsiders have the expertise and resources to hurdle whatever entry barriers exist.
E) Newcomers can expect to earn attractive profits.

Question

Quizplus · Accepted Answer

When newcomers can expect to earn attractive profits, it increases the incentive for new firms to enter the market, thereby increasing competitive pressures associated with the threat of entry.

Which One of the Following Increases the Competitive Pressures Associated