New entrants to an industry can raise the level of competition, thereby reducing its attractiveness. The threat of new
entrants largely depends on the barriers to entry. High entry barriers exist in some industries (e.g. shipbuilding)
whereas other industries are very easy to enter (e.g. estate, agency, restaurants). Key barriers to entry include;
Economies of scale, Capital / investment requirements, Customer switching costs, Access to industry distribution
channels, The likelihood of retaliation from existing industry players
New entrants to an industry can raise the level of competition, thereby reducing its attractiveness. The threat of newentrants largely depends on the barriers to entry. High entry barriers exist in some industries (e.g. shipbuilding)whereas other industries are very easy to enter (e.g. estate, agency, restaurants). Key barriers to entry include;Economies of scale, Capital / investment requirements, Customer switching costs, Access to industry distributionchannels, The likelihood of retaliation from existing industry players
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