Competitive Pressures Associated with the Threat of Entry Are Greater

question 123

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) newcomers can expect to earn attractive profits and a number of outsiders have the expertise and resources to hurdle whatever entry barriers exist.
• C) entry barriers are relatively low and buyer demand for the product is growing fairly rapidly.
• 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.

---

Definitions:

Cumulative Dollar Value

The total monetary value of something accumulated over time.

Investment

The action or process of allocating resources, usually money, with the expectation of generating an income or profit.

Custom-Write

The process of writing content or software based on the specific requirements of a client or a project.

Prewritten Application

Software or programs that have been developed and are available for use without requiring customization.