- 10 Marks
CSEG – May 2016 – L2 – Q6c – Analysing the external environment
Identify and explain five determinants of barriers to entry for new entrants into an industry, focusing on factors that protect existing firms from new competitors.
Question
A new entrant into an industry will bring extra capacity and more competition and so could, in turn drive down profits. The strength of the threat posed by new entrants is likely to vary from one industry to another and depends on the strength of the barriers to entry and the likely response of existing competitors to the new entrant.
Required: Identify and explain FIVE determinants of barriers to entry to new entrants into an industry. (10 marks)
Find Related Questions by Tags, levels, etc.
Report an error