What is the threat of new entrants?

The threat of new entrants refers to the possibility of new competitors entering an industry or market. It is an important aspect of competitive analysis and strategic planning for businesses. When new entrants come into the market, they can disrupt the existing competition and change the dynamics of the industry. This threat can arise from various factors such as low barriers to entry, easy access to technology or resources, and potential for high profitability. New entrants often bring innovative ideas, disruptive technology, or cost advantages that can challenge the incumbents and force them to adapt or lose market share. As a result, existing players need to constantly monitor and assess the potential threat posed by new entrants, and develop strategies to defend their market position.

This mind map was published on 28 January 2024 and has been viewed 58 times.