For the following descriptions, determine if they would represent high or low ba
ID: 383913 • Letter: F
Question
For the following descriptions, determine if they would represent high or low barriers to entry for an industry. Take the perspective of a potential new entrant.
Forces Description
Indicate High or Low Barriers to Entry
The minimum efficient scale is high relative to the size of the total market
The industry is growing at a pace where incumbents cannot keep up with demand
Incumbents are pricing well-above the entry deterring price of the industry
Forces Description
Indicate High or Low Barriers to Suppliers
The industry concentration is high in the supplier industry
The presence of the substitute inputs is high
Please refer to the summary slides 41-43 and the in-class discussion.
Forces Description
Indicate High or Low Barriers to Entry
The minimum efficient scale is high relative to the size of the total market
The industry is growing at a pace where incumbents cannot keep up with demand
Incumbents are pricing well-above the entry deterring price of the industry
Forces Description
Indicate High or Low Barriers to Suppliers
The industry concentration is high in the supplier industry
The presence of the substitute inputs is high
Explanation / Answer
Forces Description
Indicate High or Low Barriers to Entry
The minimum efficient scale is high relative to the size of the total market
High Barrier
The industry is growing at a pace where incumbents cannot keep up with demand
Low Barrier
Incumbents are pricing well-above the entry deterring price of the industry
Low Barrier
Forces Description
Indicate High or Low Barriers to Suppliers
The industry concentration is high in the supplier industry
High Barrier
The presence of the substitute inputs is high
Low Barrier
Forces Description
Indicate High or Low Barriers to Entry
The minimum efficient scale is high relative to the size of the total market
High Barrier
The industry is growing at a pace where incumbents cannot keep up with demand
Low Barrier
Incumbents are pricing well-above the entry deterring price of the industry
Low Barrier
Forces Description
Indicate High or Low Barriers to Suppliers
The industry concentration is high in the supplier industry
High Barrier
The presence of the substitute inputs is high
Low Barrier