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X Co offers accountancy training courses. The market is growing quickly and X’s courses are significantly different to those offered by its rivals. Any new company wishing to teach accountancy courses must obtain accreditation by the various accountancy organisations-a process which can take several years.
Based on the above information, which of the following statements can be made about X’s competitive environment?
A Competitive rivalry is likely to be low
B Supplier power is likely to be low
C Barriers to entry are likely to be low
D The threat of new entrants is likely to be lowAnswer is D.
I found C and D to be similar so I think a lot and did A. Can you please define difference between C and D.C = barriers to entry likely to be low. That would mean it is relatively easy for competitors to set up. That’s not the case here because accreditation is time-consuming.
D = threat of new entrants likely to be low means that it is it unlikely that there will be new entrants. This is true because of arduous accreditation. This is the opposite of what C is claiming.
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