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
- Chae, S., & Heidhues, P. (2004). Buyers' alliances for bargaining power. Journal of Economics & Management Strategy, 13(4), 731-754.
- Porter, M. E. (1979). How competitive forces shape strategy
- Bakos, J. Y., & Treacy, M. E. (1986). Information technology and corporate strategy: a research perspective. MIS quarterly, 107-119.
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