Final answer:
Competitive pressures are less threatening to a brand that is well established with a strong, well-respected name, due to the significant advertising budget and product differentiation required to compete with such brands.
Step-by-step explanation:
Competitive pressures on price or retail-level competition can be less threatening to a brand if the brand is well established in the market. A well-respected brand name that has been carefully built up over many years can create a significant barrier to new entrants. This is because large advertising budgets are often required to compete with established brands. For instance, competing with market leaders like Coca-Cola or Pepsi requires a substantial budget that can discourage new companies from entering the market.
The product differentiation that characterizes monopolistic competition can contribute to creating oligopoly market structures. Here, achieving a recognizable brand name through significant marketing investment is crucial, making it hard to compete with giants like Coca-Cola or Pepsi. These established brands have a mixture of a monopoly-like presence due to their strong brand identity and the intense competition they face in other aspects.