Several factors can lead to reduced competition in a market:
High Entry Barriers: When the cost or difficulty of entering a market is high, fewer businesses can afford to start operations. Market Saturation: In some cases, the market may already have enough players to meet customer demand, discouraging new entrants. Strategic Exits: Companies may leave the market voluntarily due to unprofitability or strategic realignment. Regulatory Environment: Strict regulations can also deter new businesses from entering the market.