Solve

The text below describes a few facts about the fictional worldwide e-pads industry. The description is followed by a few questions about the ing lease assume that each of the following statements about the industry is and please answer the questions using only the information contained in the text description below; you do not need to, and should not, make any assumptions beyond what is written here to answer all questions correctly. Suppose that the year is 2030 and a new type of consumer device, the e-pad (electronic pad) is on the market. More than 100 million e-pads are sold each year. The industry contains many branded manufacturers. Some additional relevant facts about the industry include: (1) the cost of a typical factory (which assembles 1 million e-pads per year) is well under US$1,000,000; (2) there is a small number of distributors and retailers for e-pads: these all have a global footprint; (3) there are many suppliers for most of the e-pad components, but only two suppliers for the microchip that is the key component; (4) a large number of firms, which had historically limited their activities to supplying e-pad components for sale to manufacturers, have now entered the worldwide branded e-pad manufacturing industry themselves; (5) although the value of e-pads could be increased by RD, few firms have distinguished their e-pads this way; by contrast, the value of substitute products, such as the ee-Phonee, has risen substantially over recent years thanks to successful RD, while the prices of such substitutes have been declining. D Question 25 1 pts The threat of entry in this industry is likely to be: O Low O High