In the context of competitive markets, the strength or weakness of the potential entry of rivals as a competitive force is best described as:

• A. the availability of substitute products
• B. the threat of new entrants
• C. the bargaining power of buyers
• D. the intensity of rivalry among existing firms

Answer: (B)

Verified step by step guidance

1. Step 1: Understand the context of the problem, which is about competitive markets and the forces that influence competition within an industry.
2. Step 2: Recognize that the question is asking about the impact of potential new competitors entering the market, which relates to how easily new firms can join and compete.
3. Step 3: Recall the framework known as Porter's Five Forces, which identifies five key competitive forces: threat of new entrants, bargaining power of buyers, bargaining power of suppliers, threat of substitute products, and intensity of rivalry among existing firms.
4. Step 4: Identify that the 'threat of new entrants' specifically refers to the strength or weakness of potential new competitors entering the market and challenging existing firms.
5. Step 5: Conclude that among the options given, the 'threat of new entrants' best describes the competitive force related to the potential entry of rivals.