Question

What is effective in preventing a potential competitor from entering the Market?

• A. High Capital Cost
• B. Differentiation
• C. Retaliation
• D. All of the above

Answer 1

The correct option is D All of the above

Business competition can be fierce. In order to gain the advantage of any opportunity it is important to prevent the potential competitor from entering the market. Following ways prove to be effective in preventing a potential competitor from entering the Market:

a) High Capital Cost

b) Differentiation

c) Retaliation.