Competitive Pressures Associated with the Threat of Entry Are Greater

question 48

Multiple Choice

Competitive pressures associated with the threat of entry are greater in all of the following situations, EXCEPT when

• A) incumbent firms are willing to strongly contest the entry of newcomers with moves designed to make entry unprofitable.
• 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) customers have low brand preferences and low degrees of loyalty to seller.

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