In Porter's five forces model, which of the following would not constitute a 'barrier to entry'?
A、Scale economies available to existing competitors
B、High capital investment requirements
C、Low switching costs in the market
A、Scale economies available to existing competitors
B、High capital investment requirements
C、Low switching costs in the market
【参考答案及解析】
Rationale: Low switching costs means that it will be easy for customers to change from existing suppliers to a new supplier: this would facilitate entry to the market. The other options should clearly pose difficulties to a new entrant: not yet big enough to benefit from economies of scale (against competitors who are); high start-up costs; high degree of recognition of and loyalty to existing brands.
Rationale: Low switching costs means that it will be easy for customers to change from existing suppliers to a new supplier: this would facilitate entry to the market. The other options should clearly pose difficulties to a new entrant: not yet big enough to benefit from economies of scale (against competitors who are); high start-up costs; high degree of recognition of and loyalty to existing brands.