Explain the market force of "threat of entry," as detailed by Porter's Five Forces model, with an example
What will be an ideal response?
New entrants into an industry can decrease profitability for incumbent firms due to increased competition. For
example, multiple entrants in the extra-large (over 70 inches) liquid crystal display (LCD) television industry
caused prices (and profits) to drop. Companies can reduce the threat of incoming firms by erecting barriers to entry,
such as by establishing a strong brand or controlling access to distribution channels. For example, Samsung invests
heavily in its brand, so it will be perceived as an industry leader and attract buyers away from competitors.
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The balanced scorecard considers ________ measures
A) only financial B) only nonfinancial C) both financial and nonfinancial D) only internal E) only external
Which of the following is a correct statement regarding the global dimensions of U.S. antitrust laws?
A) The U.S. Department of Justice has stated that U.S. antitrust law will be applied to all business practices, even if they have no "direct or intended effect" on the foreign commerce of the United States. B) Most commentators agree that even trivial restraints on the foreign commerce of the United States are likely to be prosecuted. C) U.S. appellate courts have held that U.S. courts have jurisdiction over business conduct by a foreign corporation that is based on a decision by the corporation's government to replace a competitive economic model with a state-regulated model. D) The courts of the United States evaluate the lawfulness of acts of foreign sovereigns performed within their own territories.