New entrants are attracted when the organizations’ profits are well in excess of the cost of capital. At the same time the threat of entry depends on the existence of barriers to entry and the reaction of existing competitors. Analyze barriers which make the threat of entry low with examples.(owners' control of key,vertical integration,switching cost,high set up cost)

Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
Section: Chapter Questions
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New entrants are attracted when the organizations’ profits are well in excess of the cost of capital. At the same time the threat of entry depends on the existence of barriers to entry and the reaction of existing competitors.

Analyze barriers which make the threat of entry low with examples.(owners' control of key,vertical integration,switching cost,high set up cost)

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