Final answer:
A market segment that is easy for new competitors to enter is not considered attractive, as it indicates higher competition and potential profit reductions. Industries like airlines and technology are examples of highly competitive markets with low entry barriers and strong rivalry among firms.
Step-by-step explanation:
The question addresses the concept of market attractiveness in the context of entry barriers for new competitors, a key concern in business and economics. From a competitive standpoint, a market segment that is easy for new competitors to enter is generally not considered attractive because it suggests that there will be more competition, potentially leading to lower profits. Moreover, in market structures such as perfect competition and monopolistic competition, the ease of entry for new firms is a signal of high competition levels, where firms must compete fiercely on price, quality, and other factors to maintain their market share.
Evidence of serious competition between firms in an industry includes aggressive pricing strategies, innovation, high levels of marketing, and rapid changes in market share. Two industries that are often cited for their high competitiveness are the airline industry and the technology sector. These industries are characterized by low barriers to entry for newcomers and intense rivalry among existing firms due to the presence of many competitors and the fast-paced nature of product and service development.