Barriers to Entry

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Description of Barriers to Entry. Explanation.

Definition Barriers to Entry. Description.

Barriers to Entry are obstacles to the entry into a market for new firms. These obstacles may take various forms. They may include:

• Technical barriers.

• Legal barriers, government regulations and other restrictive practices.

• Very low pricing (selling below cost price).

• Strong branding, advertising and customer loyalty by/for the existing competitors.

• Patents and other intellectual property rights.

• High Research and development costs

• Cost advantages through economies of scale.

• Distributor agreements and Supplier agreements which give exclusivity.

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Compare also: Five Forces (Porter)  |  Oligopoly  |  Competitive Intelligence  |  Microfinance  |  Competitive Environment  |  Sustainable Competitive Advantage  |  Organizational Absorption

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End of description Barriers to Entry. An explanation.