Barriers to Entry

0.0(0)
studied byStudied by 0 people
learnLearn
examPractice Test
spaced repetitionSpaced Repetition
heart puzzleMatch
flashcardsFlashcards
Card Sorting

1/10

encourage image

There's no tags or description

Looks like no tags are added yet.

Study Analytics
Name
Mastery
Learn
Test
Matching
Spaced

No study sessions yet.

11 Terms

1
New cards

List as many barriers to entry

Economies of scale, Brand loyalty, geographical , patents, first mover advantage, limit pricing, predatory pricing, vertical integration, knowledge of market/ expertise, network effects

2
New cards

Vertical integration

When a firm controls several stages of the supply chain

3
New cards

Economies of scale

Cost advantages gained by producing on a large scale.

4
New cards

Brand loyalty

Customer preference towards a specific brand.

5
New cards

Geographical barriers

Restrictions on market entry due to limited availability of resources in certain locations.

6
New cards

Patents

Legal protection granted to inventors that prevents others from recreating and distributing their invention for 20 years

7
New cards

First mover advantage

The advantage gained by being the first company to enter a market, often leading to market dominance.

8
New cards

Limit pricing

Setting prices at a low level to discourage new entrants from entering the market.

9
New cards

Predatory pricing

When a powerful firm sets prices too low for competitors to operate (usually below the cost of production - illegal).

10
New cards

Knowledge of market/expertise (and how its a barrier of entry)

Having specialised knowledge of how a market works, making it difficult for new entrants to compete

11
New cards

Network effects

The phenomenon where the value of a product or service increases as more people use it, making it harder for new entrants to attract customers.