High sunk costs limit competition (Automobile Industry India)

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High sunk costs make it difficult for a competitor to enter a new market, because they have to commit money up front with no guarantee of returns in the end. High sunk costs positively affect Automobile Industry India. … This statements will have a short-term negative impact on this entity, which subtracts from its value. "High sunk costs limit competition (Automobile Industry India)" is an easy qualitative factor to overcome, so the investment will not have to spend much time trying to overcome this issue.

Five Forces Analysis Survey This statement has a significant impact? Has a positive impact over the long term? Has a negative impact over the long term? Has a positive impact over the short term? Has a negative impact over the short term? This statement leads to reduced costs? This statement leads to increased costs? This statement leads to increased profits? This statement leads to decreased profits? Easy to defend this advantage? Easily to overcome this disadvantage? Difficult to defend advantage? Difficult to overcome this disadvantage? Affected Investments

Threat of New Competitors: High sunk costs limit competition (Automobile Industry India)
High sunk costs make it difficult for a competitor to enter a new market, because they have to commit money up front with no guarantee of returns in the end. High sunk costs positively affect Automobile Industry India.

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