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THREAT OF ENTRY. New entrants to an industry bringnew capacity and a desire to gain market share that putspressure on prices, costs, and the rate of investment necessaryto compete. Particularly when new entrants arediversifying from other markets, they can leverage existingcapabilities and cash fสows to shake up competition, asPepsi did when it entered the bottled water industry, Microsoftdid when it began to offer internet browsers, and Appledid when it entered the music distribution business.
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