Question

According to Porter's Five Forces Model, the threat of _____ into the marketplace is low when duplicating a company's product or service is difficult.

a) Supplier Power
b) New Entrants
c) Buyer Power
d) Competitive Rivalry

Answer 1

Porter's Five Forces Model indicates a low threat of new entrants when a company's product or service is hard to duplicate, indicating high barriers to entry.

Step-by-step explanation:

According to Porter's Five Forces Model, the threat of New Entrants into the marketplace is low when duplicating a company's product or service is difficult. This implies that the company benefits from high barriers to entry which are factors like legal, technological, or market forces that discourage or prevent potential competitors from entering a market. Such barriers could include patents, significant capital investment requirements, a well-respected brand name, economies of scale, and predatory pricing strategies that could deter new entrants and maintain a firm's market power.