alleryStart learning →Why are diversifying entrants an especially intense threat?
AThey face higher exit barriers
BThey leverage existing expertise
CThey lack any brand identity
DThey need government licences
Answer & Solution
Correct answer: B. They leverage existing expertise
Firms moving in from another market bring expertise, cash flow and brand identity that strain existing companies.
Keep practising Strategic Analysis: External Environment
Browse all Strategic Analysis: External Environment questions for CA Inter, or explore more Strategic Management topics.
Related questions
Which is an internal source of information for scanning?Which is a barrier that reduces the usefulness of environmental scanning?Which term is an environmental phenomenon with a structural character?Which scanning step presents findings concisely?What is the first step of a formal environmental scan?Environmental scanning is the study and interpretation of what?Which environmental level sits between the macro and micro levels?Which beliefs pass down generations and are very hard to change?