Which one of Porter's five forces is high when it is easy for new competitors to enter a market and low when there are significant entry barriers to joining a market?

a. The threat of new entrants.

b. The threat of substitute products or services.

c. The threat of buyer power.

d. Supply chain competition

Question

Social Studies

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19 March, 21:52

Which one of Porter's five forces is high when it is easy for new competitors to enter a market and low when there are significant entry barriers to joining a market?

a. The threat of new entrants.

b. The threat of substitute products or services.

c. The threat of buyer power.

d. Supply chain competition

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Answers (1)

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Tristian Wang · Answer 1

Answer: Option (A)

Explanation:

Porter's Five Forces is referred to as a apparatus which is used in order to analyze the competition of an organization. It mostly tends to be deduced from the industrial organization economics in order to acquire five forces that further determine the competitive concentration and, thereby, the allure of an organization in term of the profitability.

Here, one of the Porter's five forces i. e. threat of the new entrants is high when it is easier for the new organization to enter the market and vice versa.