Asked by Natasha De Freitas on Apr 29, 2024
Verified
You have to offer online banking if you want to operate a bank. This is a(n) ________.
A) buyer power
B) entry barrier
C) substitute product
D) supplier power
Online Banking
A service provided by banks that allows customers to perform financial transactions remotely via the internet.
Entry Barrier
Product or service feature that customers expect from organizations in a certain industry; an organization trying to enter this market must provide this product or service at a minimum to be able to compete.
Bank
A financial institution licensed to receive deposits, offer loans, and provide various financial services to individuals and businesses.
- Gain insight into the components that add to the possibility of new competitors entering a market, focusing on obstacles to entry.
Verified Answer
ZK
Zybrea KnightMay 05, 2024
Final Answer :
B
Explanation :
Requiring online banking to operate a bank represents an entry barrier, as it is a condition or requirement that must be met in order to enter the banking industry, potentially limiting the ability of new competitors to enter the market.
Learning Objectives
- Gain insight into the components that add to the possibility of new competitors entering a market, focusing on obstacles to entry.