According to Porter,threat of New Entrants Refers to ________

question 30

Multiple Choice

According to Porter,threat of new entrants refers to ________.

• A)the power that customers have over the firms
• B)the power that suppliers have over the firms
• C)the extent to which customers may use services from another industry instead of the focal industry
• D)the ability of new firms to enter an industry
• E)the intensity of the rules of an organization

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Definitions:

Price Mechanism

The way in which prices rise and fall to balance supply and demand, allocating resources efficiently in a market economy.

Competing Firms

are companies operating in the same industry or market that offer similar products or services to consumers.

Government Regulate

The activities undertaken by government authorities to control or oversee specific industries, practices, or market activities usually to ensure public welfare or fair market competition.

Economic System

The structure of methods and principles a society uses to produce and distribute goods and services.