- This topic has 1 reply, 2 voices, and was last updated 5 years ago by .
- You must be logged in to reply to this topic.
Congratulations to Jamil from Pakistan and Jeeva from Malaysia - Global Prize winners!
see all ACCA December 2022 Genius Hunt Competition winners >>
Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>
I would like to ask the area of threat of entry, differentiation is one of the factor inside threat of entry, so I would like to ask if
High differentiation of product, low threat of entry or
Low differentiation of product, high threat of entry…
Broadly right. High differentiation implies a better/special product which usually means more research and development hence a higher entry barrier.
Low differentiation implies simpler products so easier to get into.
However, if not differentiating, then cost leadership is implied for sustainable success and that can imply very large, efficient factories. That can mean relatively high barriers.