BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -The Threat of New Entrants Explained When new competitors enter into an industry offering the same products or services, a company’s competitive position will be at risk. Therefore, the threat of new entrants refers to the ability of new companies to enter into an industry.

Detailed explanation-2: -New entrants in an industry can change the competitive environment and can significantly impact the profit of current companies. As more companies enter the marketplace, the price for products becomes lower in order to compete for consumers. Companies also face high costs to raise their entry barriers.

Detailed explanation-3: -An Example of a High Threat of New Entrants A clothing designer selling their merchandise on an online platform may face a high threat of new entrants from other small businesses who may enter the market and sell similar designs at a comparable price.