Potential entrants are more likely to be deterred from actually entering an industry when
A. buyer switching costs are moderately low because of strong product differentiation among incumbent firms.
B. the relative cost positions of incumbent firms are about the same, such that no one incumbent has a meaningful cost advantage.
C. incumbent firms are complacent.
D. buyers are not particularly price-sensitive and the industry already contains a dozen or more rivals.
E. incumbent firms are willing and able to be aggressive in defending their market positions against entry.
Answer: E
You might also like to view...
Internal benchmarking is discouraged in most organizations because it creates competition and internal rivalries that are counterproductive.
Answer the following statement true (T) or false (F)
In Hendersonville, a group of salespeople get together for breakfast on the first and third Tuesday of each month. The purpose of their meeting is to share leads and prospecting tips. The group charges each member dues of $65 per quarter and participants must sell noncompetitive products. This group is an example of a(n):
A. illegal pyramid scheme. B. business network. C. list of prospects. D. sales lead club. E. orphan prospect club.
How does a free and competitive market help in attaining utilitarian goals?
What will be an ideal response?
What rules in the ABA Model Rules of Professional Conduct affect the unauthorized practice of law?
What will be an ideal response?