Reduce the intensity of rivalry among competitors

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Reference no: EM131709373

1. Threat of potential entry will become serious when…

There is no government policy banning or discouraging entry.

Entry requires significant product differentiation

Incumbent firms enjoy large scale-based advantages

Incumbent firms have strong abilities to retaliate newly entering firms

The focal industry very slowly grows.

2. Which of the following does NOT reduce the intensity of rivalry among competitors?

Similarity of firms in terms of size, market influence and product offerings.

Products are big-ticket items and purchased infrequently.

New capacity must be added in large increments.

Slow industry growth or decline in demand.

The repeal of anti-trust law

Reference no: EM131709373

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