CEVAP:

The impact of new entrants depend on several factors such as economies of scale, network effects, customer switching costs, and government policy. If economies of scale is high, large existing companies can have a cost advantage over new entrants. When network effects are present, the value of the product increases with the number of customers. As a result, it will be difficult for new entrants to compete effectively. If changing suppliers may require the customer to change product specifications, retrain employees, and/or modify existing processes, switching costs can be a great barrier to entry. When restrictive government policies exist or industries are regulated heavily, the threat of entry is low.