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Marketıng Management
MARKETING MANAGEMENT (PAZARLAMA YÖNETİMİ) - (İNGİLİZCE) Dersi Strategic Management, Competition, and Marketing soru cevapları
MARKETING MANAGEMENT (PAZARLAMA YÖNETİMİ) - (İNGİLİZCE) Dersi Strategic Management, Competition, and Marketing soru detayı:
SORU: Explain `The Threat of New Entrants`.
Explain `The Threat of New Entrants`.
CEVAP: New businesses enter a market with hopes of gaining market share, and this in turn puts pressure on prices, costs, and investment rate which is necessary to compete, and thus threat of entry limits the profit potential of an industry. The threat of entry depends on the easiness of entering an industry. If it is easy for new entrants to enter an industry, this means your number of competitors will increase quickly and this in turn weakens your competitive position in the market.
New businesses enter a market with hopes of gaining market share, and this in turn puts pressure on prices, costs, and investment rate which is necessary to compete, and thus threat of entry limits the profit potential of an industry. The threat of entry depends on the easiness of entering an industry. If it is easy for new entrants to enter an industry, this means your number of competitors will increase quickly and this in turn weakens your competitive position in the market.