Asked by Danielle Thompson on May 17, 2024
Verified
According to Michael Porter, there are five determinants of competition. An example of _____ is the threat new competitors pose to existing competitors in an industry.
A) threat of entry
B) rivalry between existing competitors
C) pressure from substitute products
D) bargaining power of buyers
E) bargaining power of suppliers
Threat of Entry
The risk existing businesses face when new competitors are able to enter the market or industry.
Existing Competitors
Companies that are currently operating in the same market and competing for the same customers.
Industry
A classification that refers to groups of companies that are related based on their primary business activities.
- Familiarize yourself with the five forces of competition outlined by Porter and their repercussions on market structures.
Verified Answer
TS
Trenisha SmithMay 21, 2024
Final Answer :
A
Explanation :
The threat new competitors pose to existing competitors in an industry is referred to as the "threat of entry" according to Michael Porter's Five Forces model. This factor assesses how easy or difficult it is for new entrants to start competing in an industry, which can affect the competitive landscape.
Learning Objectives
- Familiarize yourself with the five forces of competition outlined by Porter and their repercussions on market structures.