Using the "5 Forces Framework" by Michael Porter write two paragraphs to answer 1. "Threats of New Entrants"What are entry barriers in this industry?How are industry incumbents likely to respond to...

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Discussion    3
Threat of New Entrants    3
Threat of Substitutes    4
Work Cited    5
Discussion
Threat of New Entrants
Due to high entry barriers, the threat of new competitors entering the Amazon Subscriptions market is minimal. Amazon, making it difficult for new companies to successfully compete, dominates the e-commerce and subscription service markets. The substantial capital expenditure required replicating Amazon's extensive infrastructure, including its extensive distribution network and data centres, is a significant entrance hurdle. Additionally, Amazon enjoys the advantages of economies of scale, enabling it to provide a large choice of services at affordable prices, making it challenging new competitors to match its selection. Additionally, new entrants find it challenging to win over customers to the same degree of confidence due to Amazon's strong brand loyalty and consumer trust throughout the years. Intellectual property rights and regulatory difficulties might also be a barrier for potential immigrants (Klatt & Tyler).
In order to protect their market share against new competitors, industry incumbents are likely to make use of their...