Barriers to Entry

Description of Barriers to Entry. Explanation.

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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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End of description Barriers to Entry. An explanation.