BUSINESS ADMINISTRATION
STRATEGIC MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Economies of Scale
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Expected competitor retaliation
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Customer product loyalty
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Bargaining power of suppliers
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Detailed explanation-1: -Answer: (c) bargaining power of suppliers Explanation: Barriers to ind…
Detailed explanation-2: -Answer and Explanation: The correct answer is 1. differentiated products. This is not a barrier to entry.
Detailed explanation-3: -The correct answer is C). In the above-given statement, a low capital requirement for entry is not an example of an entry barrier.
Detailed explanation-4: -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-5: -Common barriers to entry include special tax benefits to existing firms, patent protections, strong brand identity, customer loyalty, and high customer switching costs. Other barriers include the need for new companies to obtain licenses or regulatory clearance before operation.