Competitive Pressures Associated with the Threat of Entry Are Greater

question 117

Multiple Choice

Competitive pressures associated with the threat of entry are greater when:

• A) incumbent firms are unable or unwilling to strongly contest the entry of newcomers.
• B) a large pool of potential entrants exists,some of which have the capabilities to overcome high entry barriers.
• C) entry barriers are relatively low and buyer demand for the product is growing rapidly,and newcomers can expect to earn attractive profits without inviting a strong reaction from incumbents.
• D) existing industry members are looking to expand their market reach by entering product segments or geographic areas where they currently do not have a presence.
• E) All of these conditions heighten the competitive pressures associated with fresh entry into the industry.

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Definitions:

Adaptive

Refers to the ability of an organism to adjust and change its behavior, structure, or physiology to become more suited to its environment.

Abundance

The great quantity or amount of something in a given area or volume.

Pathogens

Microorganisms or agents that can cause disease, including viruses, bacteria, fungi, and parasites.

Pandemic

A widespread epidemic that covers a large geographical region and infects a significantly large portion of the people.