Question

How are cumulative learning and experience effects of a company most likely to affect Michael Porter's five forces?

Answer 1

Answer:

A. Threat of new entrants will be low

Explanation:

Micheal Porter's Five Forces is a framework designed for the sole purpose of analyzing a company's competitive environment. Based on this information it can be said that the cumulative learning and experience effects of a company will most likely affect these forces by making the threat of new entrants extremely low since it will make competing with the already established company extremely hard and lead to almost certain failure for the entering company.