Question

The risk that potential competitors will enter the industry is known as the ______.

Multiple choice question.
power of suppliers
threat of entry
rivalry among existing competitors
threat of substitutes
power of buyers

Answer 1

The risk that potential competitors will enter the industry is known as the threat of entry. When assessing the threat of entry, several factors need to be considered, such as market power, product similarity, barriers to entry, and the competitive strategies employed by existing firms.

Step-by-step explanation:

The risk that potential competitors will enter the industry is known as the threat of entry.

When assessing the threat of entry, several factors need to be considered, such as market power, product similarity, barriers to entry, and the competitive strategies employed by existing firms.

The presence of significant barriers to entry, such as high capital requirements or legal restrictions, can deter potential competitors from entering the market.