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In the Big Box Discount Warehouse industry is threat of new entry a big concern to...

In the Big Box Discount Warehouse industry is threat of new entry a big concern to those already in the industry? Why or why not?

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Answer #1

In the Big Box Discount Warehouse business, the threat of recent entry is sort of non-existent for those already within the business.

This is as a result of the following -

  • High whole loyalty within the current business
  • Lower margins
  • Brands' Images are already built
  • The requirement of high initial capital investment
  • Little to no access to the best suppliers and distribution channels
  • No threat of getting even
  • The threat of getting even from existing competitors
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