Mr$.$ Krabs is thinking about closing The Krusty Krab $($much to SpongeBob's chagrin$)$ because he is not making as much money as he once did. Mr$.$ Krabs discovers that there is a large market for used restaurant fixtures and equipment. He also finds that it will be easy to sell his building because it can be converted into any number of other kinds of businesses. Mr$.$ Krabs' research demonstrates the existence of in the restaurant industry.

high capital requirements

intense rivalry

low exit barriers

little customer loyalty