3. RailTrav has just reduced its ticket prices as a response to several budget airlines being introduced in the country for domestic travel from one state to another. This is a response to which of the following factors? A. Bargaining power of customers B. Threat of new entrants C. Competitive rivalry D. Threat of substitutes
i am confused about this question new airlines have been introduced shouldn't it be threat of new entrants instead of competitive rivalry?
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porter 5 forces
5y ago#1Threat of new entrants refers to firms who are not yet in the market but who might enter. They are hovering on the edge, wondering if they could pounce.
Once a firm has entered the market it is a competitor.
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