In Michael Porter's five forces model of industry attractiveness, __________ is determined by barriers to entry such as economies of scale and brand loyalty.
A) threat of substitutes
B) threat of new entrants
C) bargaining power of buyers
D) bargaining power of suppliers
E) intensity of current competitive rivalry

Question

Quizplus · Accepted Answer

The threat of new entrants is determined by barriers to entry such as economies of scale and brand loyalty. This means that if there are high barriers to entry, it makes it difficult for new companies to enter the industry and compete with existing players. Therefore, the threat of new entrants is lower.

In Michael Porter's Five Forces Model of Industry Attractiveness, __________