Businesses can employ several strategies to mitigate the threat of new entrants according to Porter's Five Forces Analysis. They can create high entry barriers by investing in brand reputation, customer loyalty, and proprietary technology. They can also establish economies of scale, which can deter new entrants due to the high initial investment required. Additionally, businesses can develop strong relationships with suppliers and distributors to control access to resources and markets. Lastly, they can use legal and regulatory measures, such as patents and licenses, to protect their market position.
Competition management is at the core of strategy formulation and an understanding of the underlying...
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