BUISENESS MANAGEMENT
MARKET RESEARCH
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Primary data
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Historical research
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Target market
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Market segment
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Barriers to entry
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Detailed explanation-1: -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.
Detailed explanation-2: -Answer and Explanation: The correct option is: economies of scale. Explanation: In the electric industry, a firm generally enjoys a monopoly in the market due to the economies of scale that will become a barrier to entry for other firms.
Detailed explanation-3: -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-4: -Key Takeaways Barriers to exit are obstacles or impediments that prevent a company from exiting a market or industry. Typical barriers to exit include highly specialized assets, which may be difficult to sell or relocate, and high exit costs, such as asset write-offs and closure costs.