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:

Revenue

The total amount of money generated from the sale of goods or services, before deducting any expenses.

Total Cost

The complete cost of production that includes both fixed and variable expenses incurred to produce a good or service.

Quantity

The quantity of a physical or intangible asset or service.

Managers

Individuals in an organization responsible for directing and overseeing the work of others to achieve the organization's goals.