Final answer:
The correct option is 'Threat of new entrants,' which is part of Michael Porter's Five Forces Model to assess industry competitiveness. The model includes barriers to entry, which may be government-enforced or arise naturally.
Step-by-step explanation:
The correct option among the given choices is Threat of new entrants, which is one of the forces in the Five Forces Model created by Michael Porter. This model is used to assess the competitive environment of an industry and includes the following five forces: rivalry among existing competitors, threat of new entrants, bargaining power of suppliers, bargaining power of customers, and the threat of substitute products or services.
Barriers to entry are factors that make it difficult for new competitors to enter a market. These can be government-enforced barriers, like licenses and regulations, or natural barriers, such as brand loyalty or economies of scale.
For example, in the taxi industry, cities may limit the number of licenses they issue, which creates a government-enforced barrier to entry. Additionally, owning a well-known trademark or having significant economies of scale can also serve as barriers to entry in certain industries.