Threat of entry

This is the threat that new competitors may enter the market.New entrants may be new organisations delivering similar products or services, typically at a lower price or with improved features, or new products or services which render the organisation’s existing products or services obsolete (for example ball point pens significantly reduced the market for fountain pens). The level of threat depends on the barriers to entry (for example the level of technological investment required to set up operations or the regulatory requirements of the market). Threat of entry is a term normally found in strategic planning and management; explore our learning zone to discover more.