Exit barriers are low (Groupon)

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When exit barriers are low, weak firms are more likely to leave the market, which will increase the profits for the remaining firms. Low exit barriers are a positive for Groupon. … "Exit barriers are low (Groupon)" is a difficult qualitative factor to defend, so competing institutions will have an easy 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

Intensity of Existing Rivalry: Exit barriers are low (Groupon)
When exit barriers are low, weak firms are more likely to leave the market, which will increase the profits for the remaining firms. Low exit barriers are a positive for Groupon.

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