High sunk costs limit competition (NMBHI)

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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 NMBHI. … "High sunk costs limit competition (NMBHI)" has a significant impact, so an analyst should put more weight into it. "High sunk costs limit competition (NMBHI)" will have a long-term positive impact on the this entity, which adds to its value. This qualitative factor will lead to a decrease in costs. "High sunk costs limit competition (NMBHI)" is an easily defendable qualitative factor, so competing institutions will have a difficult time overcoming it.

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? Easy to overcome this disadvantage? Difficult to defend advantage? Difficult to overcome this disadvantage? Affected Investments

Threat of New Competitors: High sunk costs limit competition (NMBHI)
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 NMBHI.

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