4. Potential of New Entrants into the Industry (10 points): . Consider the following questions: how easy is it for competitors to set up in this industry? Which government agencies license and regulate the industry? How much time and expenditure does it take to establish the product? How much Research and Development is needed to bring the product to market? Which government body is responsible for regulating this product- and how strict are the regulations? This means that there are strong barriers to entry, giving the supplier more power in the competitive landscape. Example: to enter into the international airline industry, it takes significant capital investment. Furthermore, because there are many government bodies that regulate international travel, regulation is arduous and strict. For example, international travel from Calgary to the United States will involve compliance with at least two government regulation bodies: Canadian Transport Agency (CTA), and the Federal Aviation Agency (FAA). - Conclusion: strong barrier to entry gives Air Canada more competitive power