Question

The strength or weakness of the potential entry of rivals as a competitive force is

Answer 1

Answer:

The correct answer is letter "C": contingent upon whether the industry's growth and profit prospects are strongly attractive to potential entry candidates.

Explanation:

An economy's growth can be both an opportunity and a threat to competitors' entry. It becomes an opportunity for incoming firms since their profit possibilities increase in a healthy economy. However, it represents a threat when the target region faces major issues or imposes rigid regulations that could complicate the business' success.

Answer 2

Answer:

The correct answer is the option D: strongly correlated with the degree to which the industry's driving forces make it harder or easier for the new entrants to be successful.

Explanation:

To begin with, the entry of new competitors to the industry is regulated upon many factors that tend to make the procedure more or less difficult. Moreover, the entrance of the new companies will generate a change in the industry depend if the barriers are high or low and therefore that in certain industries the driving forces will complicate as much as they can the entrance due to the fact that there are few competitors already in the industry or because there are possession of special supplies and that is strongly correlated to the strength or wearkness of the potential entry of rivals at the industry.