Threat of New Entrants
The risk that new competitors will enter a market, determined by how high the barriers to entry are.
The threat is strong when barriers to entry are low and a new business can enter and capture market share easily. A business can often rate this force from its own founding: cheap entry then means cheap entry now.
Often Confused With
- Competitive Rivalry
- New entrants are competitors who have not arrived yet; rivalry counts the ones already selling.
Taught In
See Also
4.4.A.4 · 4.4.B.3