Home Page
DSSResources.COM
PowerEnterprises.Net
Content Channels:
Ask Dan!
Glossary
Library
Planning Tips
Slides
Web Links
Site Information
About Us
Disclaimer
Privacy Statement
Welcome
|
Threat of Entry
Porter (1979) identified the likelihood that outside firms would enter an industry as a threat that serves to constrain profits. The threat of entry is decreased by barriers like differentiated products, patents and high fixed costs of firm's currently in the industry. The perception of the threat from an entrant's perspective is also impacted by the retaliatory resources of existing competitors. When industry profits increase, one expects additional firms to enter the market to take advantage of the high profit levels, over time driving down profits for all firms in the industry.
from http://planningskills.com/askdan/13.php |
