Economic, procedural, regulatory, or technological factors that obstruct or restrict entry of new firms into an market.
- clear product differentiation
- necessitating heavy advertising expenditure to introduce new products
- economies of scale --> necessitating heavy investment in large plants to achieve competitive pricing
- restricted access to distribution channels
- collusion on pricing
- well established brands
- fierce competition.
Legal restrictions placed on the right of certain industries (or on industries in certain localities) to close down their operations and redeploy their resources in more fruitful ventures.
- loans
- debts
- owed products to consumers
- contracts with suppliers
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