BUSINESS ADMINISTRATION
STRATEGIC MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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investment cost
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retaliation by co-new entrants
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number of buyers
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number of supplier
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Detailed explanation-1: -Brand identity and customer loyalty serve as barriers to entry for potential entrants.
Detailed explanation-2: -There are 4 main types of barriers to entry – legal (patents/licenses), technical (high start-up costs/monopoly/technical knowledge), strategic (predatory pricing/first mover), and brand loyalty.
Detailed explanation-3: -A barrier to entry is any obstacle that keeps new firms from entering the market. These can range from high costs of entry, permits and government regulation, availability of resources, etc.
Detailed explanation-4: -Capital costs are often a key barrier to entry in industries (such as telecoms) where the investment that needs to be made in fixed assets by a start-up is high relative to the sales and profits those assets will generate.
Detailed explanation-5: -Barriers to entry are obstacles that make it difficult to enter a given market. These hindrances may include government regulation and patents, technology challenges, start-up costs, or education and licensing requirements.