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Competitive Pressures Stemming from the Threat of Entry Are Weaker

Question 20

Multiple Choice

Competitive pressures stemming from the threat of entry are weaker when:


A) the incumbents do not enjoy preferential access to distribution channels (e.g. ,securing adequate space on retailer shelves) .
B) strong network effects exist.
C) the industry outlook is risky or uncertain.
D) incumbent firms have little ability to leverage distributors,dealers,and/or retailers to retain their business.
E) the nature of the industry entails few scale economies.

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