Question

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?

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