Porter, 2008 - Five Forces Framework - Threat of Entry
3 important questions on Porter, 2008 - Five Forces Framework - Threat of Entry
What do new entrants bring to an industry?
New capacity and a desire to gain market share.
What does the threat of entry in an industry depend on?
The height of entry barriers that are present and on the reaction entrants can expect from incumbents.
What happens if entry barriers are low and little retaliation is expected from entrenched competitors?
The threat of entry is high and industry profitability is moderated.
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