The Likelihood of New Entrants Joining an Industry Is Low

question 78

Multiple Choice

The likelihood of new entrants joining an industry is low if switching costs 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:

Base of Support

The area beneath an object or person that includes every point of contact that the object or person makes with the supporting surface.

Centre of Gravity

The point in a body or system where the weight is evenly distributed and about which the body is balanced.

Balance

The ability to maintain the body's center of mass over its base of support, crucial for standing and moving efficiently and avoiding falls.

Ligament Tear

A ligament tear refers to damage to a ligament, the fibrous connective tissue that connects bones to other bones, often caused by twisting or a sudden impact.