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Low Entry Barriers: The internet offers low entry barriers, making it relatively simple to create new websites or applications. This increases the number of potential new entrants.
Technological Advancements: Continuous technological advancements mean that the mobile environment may see additional innovations, providing opportunities for new entrants.
Brand Recognition: After creating a website or app, building a recognizable brand is challenging and requires high marketing costs, which not all new entrants can afford.
Creative Competition: There is a significant threat from creative apps targeting the same niche demographic as Instagram.
Adaptability: Instagram can readily adapt to these threats by evolving its platform. For instance, the addition of reels shows how Instagram responded to the popularity of short video apps.
User Experience: Instagram constantly improves its user experience, helping retain its competitive edge.
Moderate Threat: Despite the factors above, there is a moderate threat of new entrants because of the need for continuous innovation and significant marketing investment.
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