Respuesta :

Existing businesses do not want more competitors, new entrants organizations are discouraged by cost advantages.

Who are new entrant organization?

There are firms that are not in business yet to currently compete with existing firms but they may join the industry in the future.

This organization are discouraged by,

  • Brand loyalty where customers are loyal to existing companies.
  • Cost advantages: offering of product at a lower price than the new entrants.
  • Government regulations

Therefore, new entrants organizations are discouraged by cost advantages, government regulations and brand loyalty.

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