Reference no: EM133299368

The threat of new entrants indicates how new market participants offer a threat to established market participants. If the industry is profitable and the barriers to entry are low, it will attract more participants and so the threat of new entrants will be significant. You are getting quality pizza in a timely mannerfor a good price, making even new entrants unattractive to most knowing they are going to be satisfied. Being capital intensive, the fast-food market is less of an investment, so the industry is constantly growing. However, with the ability to compete in this market, new candidates are trying to steal customers but do not have the loyalty with their customers making it hard to establish relationships, essentially not gaining business.