The Likelihood of New Entrants Joining an Industry Is Low

question 38

Multiple Choice

The likelihood of new entrants joining an industry is low if capital requirements to enter the industry are high because:

• A) new entrants struggle to match incumbents' prices.
• B) this discourages customers from buying a new entrant's offerings.
• C) new entrants struggle to gather enough cash to get started.
• D) each incumbent has a group of loyal customers that enjoy its unique features.
• E) new entrants struggle to get their offerings to customers.

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Definitions:

Collectivism

A social theory emphasizing the priority of group goals over individual goals and the importance of cohesion within social groups.

Power Distance

A cultural dimension that reflects the extent to which less powerful members of organizations and institutions accept and expect that power is distributed unequally.

Social Distance

The level of acceptance and comfort between individuals within a community or society, often influencing social interactions.

Organizational Structure

The system of tasks, workflows, reporting relationships, and communication channels that define how activities are directed to achieve the goals of an organization.