Through research and development, a cable company has found a way to use its existing network lines to serve customers with a new product offering $$ home security systems. The company is offering the service for a lower monthly fee than most security companies. However, the sales force didn't see a lot of interest among its customers who had an existing security system from a competitor until they ran a promotion for reduced prices on equipment and free installation. Which of the competitive forces is at play?

Through research and development, a cable company has found a way to use its existing network lines to serve customers with a new product offering $$ home security systems. The company is offering the service for a lower monthly fee than most security companies. However, the sales force didn't see a lot of interest among its customers who had an existing security system from a competitor until they ran a promotion for reduced prices on equipment and free installation. Which of the competitive forces is at play?

Entry barriers high

Complementors

Customer switching costs

Supplier power