What are the issues for evaluating potential threat of entry

Question

What are the issues for evaluating the potential threat of entry?

Answer 1

Whether an company’s entry barriers ought to be measured low or high and how hard it is for novel entrants to fight on a level playing ground based on the resources and competencies obsessed by the pool of potential entrants.

For evaluating the potential threat of entry, the company managers must look at:

a. How frightening the entry barriers are for each kind of potential entrant.

b. How attractive the growth and benefit prospects are for the new entrants.