Page 41 - BrewDog Industry Analysis
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2. Threat of New Entrants
Power
The ‘Threat of New Entrants’ factor indicates the ease with
which new companies can enter the market of a particular
industry. If it is easy to enter an industry, companies face
the constant risk of new competitors.
• If new entrants move into an industry, they will gain
market share and rivalry will intensify
• The position of existing firms is stronger if there are
barriers to entering the market
• If barriers to entry are low then the threat of new
entrants will be high, and vice versa
Barriers to entry are, therefore, very important in
determining the threat of new entrants. An industry can
have one or more barriers:
