Final answer:
In Porter's competitive forces model, the 'threat of new entrants' is high in markets with low capital requirements and experience needed to start a business, leading to low barriers to entry and increased competition.
Step-by-step explanation:
According to Porter's competitive forces model, the threat of new entrants in an industry is high because startups require little capital and experience to begin operations. When there are low barriers to entry, new firms may easily enter the market. Factors contributing to low barriers can include minimal capital requirements for starting a business, lack of established brand dominance, or industries where economies of scale are not significant. Therefore, in certain competitive markets, the profit potential can incite new businesses to emerge, expanding the industry's landscape and intensifying competition.