Raising barriers to Entry is a suitable response to which one of the following of Porters 5 forces?

Study for the BCS Foundation Certificate in Business Change Exam. Enhance your knowledge with flashcards and multiple-choice questions, with hints and explanations for each question. Prepare thoroughly for your exam!

Raising barriers to entry is primarily an effective strategy in response to the threat of new entrants. Businesses operate in various competitive environments, and one of the significant challenges they face is the potential for new competitors to enter the market. By implementing higher barriers to entry, existing companies can protect their market position and profitability.

Barriers to entry can take several forms, such as high startup costs, regulations, economies of scale, brand loyalty, and access to distribution channels. By creating these barriers, established companies deter new entrants from competing effectively in the market. For example, if a company has significant brand loyalty or operates in an industry with high capital requirements, it becomes increasingly difficult for new firms to penetrate and succeed.

This strategy helps to maintain the competitive advantage of existing players, allowing them to safeguard their market share and sustain higher levels of profitability over time. Hence, focusing on raising barriers specifically addresses the need to counteract the threat posed by new entrants, making it the most suitable response in this context.

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