MANAGEMENT

Detailed explanation-1: -Competitor threats can be everything from supply chain disruptions (hello, 2020/2021) to new companies being formed. If the competitor you are analyzing provides something similar to your own product or offering, these threats may be similar to your own. In this sense, threats can be both internal and external.

Detailed explanation-2: -High Threat of New Entrants When: Low brand loyalty in the current industry. Current brand names are not well-known. Low initial capital investment required. Access to suppliers and distribution channels is easy to obtain.

Detailed explanation-3: -According to global strategist and author Prof Pankaj Ghemawat, the major threats to sustainability are imitation, substitution, hold-up and slack. Imitation is inevitable as successful companies are studied threadbare by competition.

Detailed explanation-4: -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.