How does the threat of new entrants have the potential to suppress an industry’s profitability?

How does the threat of new entrants have the potential to suppress an industry’s profitability? A high threat of new entrants makes an industry less attractive – there are low barriers to entry. Therefore, new competitors are able to easily enter into the industry, compete with existing firms, and take market share. There is a … Continue reading How does the threat of new entrants have the potential to suppress an industry’s profitability?