$2$

$10$ points

Drag and drop the threat of entry factors into the correct categories:

Threat of entry is a stronger force when incumbents are unlikely to make retaliatory moves against new entrants and entry barriers are low when

Threat of entry is a weaker force when incumbents are likely to make retaliatory moves against new entrants and entry barriers are high when

Possible answers

:: Incumbents have high economies of scale

:: Customers have strong brand preferences

:: Capital requirements are low

Incumbents have large cost advantages over potential entrants

:: Patents and other forms of intellectual property protection are in place.

:: Customers have low loyalty to incumbent sellers.

:: There are high new opportunities to access distribution channels and shelf space.

:: Incumbents have poor experience$-$based cost advantages or learning curve effects