In good times and the company operating the industry, it is difficult to achieve economies of scale. This allows the production of large capacitors enterprises easier access to cost advantages. It also enables the production costs of new entrants higher. This makes the threat of new entrants becoming weaker. It has a strong product differentiation in the industry, industry sales of differentiated products rather than standardized products. Customers also look for differentiated products. Also attaches great importance to advertising and customer service. All these factors make the threat of new entrants become weak force in the industry. <br>The industry's high capital requirements, therefore, due to the need to bear the high expenses, so the new entrants is difficult to conduct business. Due to high development costs, capital spending is also high. All these factors make the threat of new entrants to be a force in the industry weaker.
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