What four attributes influence an industry's favorability to new firm entry? Choose the four that apply.1 pointIndustry structure Innovation potentialIndustry lifecycleKnowledge conditions Demand conditions Market attractiveness
Question
What four attributes influence an industry's favorability to new firm entry? Choose the four that apply.1 pointIndustry structure Innovation potentialIndustry lifecycleKnowledge conditions Demand conditions Market attractiveness
Solution
The four attributes that influence an industry's favorability to new firm entry are:
-
Industry Structure: This refers to the number of companies in the industry, their relative sizes, and their competitive strategies. A fragmented industry with many small competitors can be more favorable for new entrants than a consolidated industry dominated by a few large firms.
-
Innovation Potential: Industries with high innovation potential are often more favorable to new entrants. This is because innovation can disrupt established market positions and create opportunities for new firms.
-
Knowledge Conditions: This refers to the level of knowledge and expertise required to operate in the industry. Industries with high knowledge conditions can be less favorable to new entrants because of the time and resources required to acquire the necessary knowledge and skills.
-
Market Attractiveness: This refers to the potential profitability of the industry. Industries with high market attractiveness are more favorable to new entrants because they offer the potential for high returns on investment.
Similar Questions
Which factor makes an environment attractive for new entrants?Multiple Choicehigh barriers to entrylow industry growthfavorable government policyhigh capital requirementssmall customer base
Which of the following competitive forces affect an industry's attractiveness? (Check all that apply.)Multiple select question.Competitive pressures stemming from creating entry barriers in the marketCompetitive pressures associated with being the first entrant in a marketCompetitive pressures stemming from supplier bargaining powerCompetitive pressures associated with the threat of new entrants into the marketCompetitive pressures stemming from buyer bargaining power
Question 6What are the four characteristics of industry structure? Choose the four that apply.1 pointDemographicsFirm concentrationCapital intensityAdvertising intensityFirm sizePsychographicsRegulatory issues
Characteristics of an attractive industry, where firms may achieve strategic competitiveness and earn above-average returns includes which of the following?Question 3Select one:a.Low entry barriersb.Suppliers and buyers with little bargaining powerc.Strong competitive threats from product substitutesd.Moderate to high rivalry
Which of the following factors is not a significant influence on a company's competitive environment?Group of answer choicesthe availability of supportive organizational structureshow many competitors are activewhat the market share of each competitor ishow profitable competitors are
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.