The Likelihood of New Entrants Joining an Industry Is Low

question 78

Multiple Choice

The likelihood of new entrants joining an industry is low if switching costs are high because:

• A) new entrants struggle to match incumbents' prices.
• B) this discourages customers from buying a new entrant's offerings.
• C) new entrants struggle to gather enough cash to get started.
• D) each incumbent has a group of loyal customers that enjoy its unique features.
• E) new entrants struggle to get their offerings to customers.

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Definitions:

Experiential Learning

A process of learning through direct experience and reflection on those experiences.

Skill Application

The practical use of learned abilities and expertise to accomplish tasks or solve problems effectively.

Aptitude Tests

Standardized tests designed to measure an individual's ability or potential to perform certain tasks and succeed in certain areas.

Manufacturing Sector

The branch of industry involved in the production of goods using raw materials and machinery.