Threat of new entrants

Threat of new entrants is one of five aspect (force) of Five forces analysis and depends on:

  • there is high number of competitors in the industry
  • barriers to entry is very low, low capital needed to introduce product/services to market
  • government regulation promote creating new companies on the market
  • low customer loyalty to brand or company
  • relatively easy access to infrastructure, suppliers and distributors
  • no patented technology present in products


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