BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Barriers which tend to prevent a firm within an industry from changing the strategic group to which it belongs are called mobility barriers (Porter 1980, p. 134). over others. The firms in strategic groups with high mobility barriers will have greater profit potential than those in groupswith lower mobility barriers.

Detailed explanation-2: -industry-specific factors that separate one strategic group from another. of a wide rage of political, economic, sociocultural, technological, ecological, and legal (PESTEL) factors that can affect industry and firm performance. These external forces have both domestic and global aspects.

Detailed explanation-3: -Mobility barriers are structural forces preventing firms in the industry from shifting from one strategic group to another (Caves and Porter, 1977; Porter, 1979). Firms from outside a strategic group have to pay much for the entry, whereas members of the group need not (McGee and Thomas, 1986).

Detailed explanation-4: -They can help firms create a competitive advantage by preventing competitors from entering a particular market or gaining access to resources. Mobility barriers can be used to protect a company’s market position. By erecting barriers to entry, a company can limit competition and protect its market share.

Detailed explanation-5: -What’s it: Strategic entry barrier is actions taken by existing companies (incumbents) to deter new players from entering their market. It can take various forms, such as limit pricing, product differentiation, and loyalty schemes. Advertisement.