Because the Internet lowers barriers to entry in most industries,it ________.
A) decreases the threat of new entrants
B) increases the threat of new entrants
C) makes it easier to build customer loyalty
D) increases supplier power

Question

Quizplus · Accepted Answer

In most industries, the threat of new entrants has increased because digital and Internet-based technologies lower barriers to entry. Internet businesses may enjoy savings on traditional expenses which may encourage more entrants who see an opportunity to capture market share by offering a product or performing a service more efficiently than existing competitors.

Because the Internet Lowers Barriers to Entry in Most Industries,it