Question

How can an organization combat the threat of new entrants?

Answer 1

To combat the threat of new entrants, organizations can create barriers to entry and intimidate potential competition through practices like predatory pricing.

Step-by-step explanation:

In order to combat the threat of new entrants, an organization can employ various strategies. One method is to create barriers to entry, which can include gaining control of a physical resource, using legal restrictions on competition, or obtaining patent and copyright protection. Another strategy is to intimidate potential competition through practices such as predatory pricing. This involves using the threat of sharp price cuts to discourage competition.