The Competitive Threat That Outsiders Will Enter a Market Is

question 135

Multiple Choice

The competitive threat that outsiders will enter a market is weaker when:

• A) financially strong incumbents send strong signals that they will launch strategic initiatives to combat the entry of newcomers.
• B) the industry is characterized by the lack of sizable scale economies and learning/experience curve effects.
• C) the industry's market growth is rapid.
• D) the capital requirements for entering the market are within acceptable levels to provide acceptable returns on investment.
• E) buyers have little loyalty to the brands and product offerings of existing industry members.

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Definitions:

Hypothetical Question

A question based on assumed or imagined circumstances, often used in legal contexts to explore possibilities or test theories.

Open-ended Question

A question formatted to allow a wide range of answers, encouraging detailed or explanatory responses rather than simple yes/no answers.

Closed-ended Question

A question format that limits respondents' answers to predefined options, making it easier to analyze responses statistically but potentially limiting the depth of insight.

Hypothetical Question

A question based on assumptions or imaginary situations, often used in legal contexts to explore potential outcomes or decisions.