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September 29, 2016
No of pages / words:
2 / 487
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2. How do entry barriers influence industry attractiveness and profitability?
Ease of entry refers to how easy or difficult it is for a new firm to begin competing in the industry...
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The ease of entry into an industry is important because it determines the likelihood that a company will face new competitors. In industries that are easy to enter, sources of competitive advantage tend to decline quickly. On the other hand, in industries that are difficult to enter, sources of competitive advantage last longer, and firms also tend to benefit from having a constant set of competitors...
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