What weakens the threat of new entrants according to the competitive landscape?

The high brand awareness of existing companies significantly weakens the threat of new entrants in a competitive landscape. When established companies have strong brand recognition, potential new entrants face considerable barriers to entering the market. Brand loyalty plays a crucial role in consumers' purchasing decisions; therefore, existing companies with well-established brands can attract and retain customers more easily than newcomers.

Moreover, high brand awareness often translates into a perception of quality, reliability, and trust, making it challenging for new competitors to persuade consumers to switch. In markets where customer loyalty is prevalent, a new entrant would need to invest heavily in marketing and promotional efforts to build similar recognition and trust, which can be resource-intensive and risky.

Other factors, such as low production costs and increasing numbers of designers, might not create sufficient barriers to entry because they can actually lower the cost and thresholds for new competitors. Similarly, a lack of product differentiation may relax the constraints for entry but does not protect existing companies that have strong brands. In contrast, established brand awareness represents a robust defense against new competitors who must overcome significant challenges to capture market share.