Which statement about buyer demand growth is true concerning new entrants?

The statement that buyer demand growth directly intensifies the threat of new entrants is accurate because an increase in demand typically attracts new competitors into the market. When existing demand for a product or service rises, it signals potential profitability to new businesses considering entry. This heightened interest can lead to more players in the market, as new entrants are motivated by the prospect of capturing market share and benefiting from increased sales as they seek to cater to the growing consumer base.

Furthermore, increased buyer demand can make it easier for new companies to establish themselves since they can potentially achieve profitability more swiftly by leveraging the existing market conditions. This scenario can lead to a crowded marketplace where competition heats up, making it more challenging for current businesses to maintain their market position.

To provide some context about other options: While it may seem that weakened threats or opportunities for dominance might arise from demand growth, that scenario generally applies to already established brands which might fortify their market position. However, the core concept revolves around the enticing nature of growth in demand for new entrants looking to disrupt or join the existing market landscape.