barriers to entry
- Factors that prevent competitors from entering a particular market. These factors may be innocent, e. g. an absolute cost advantage on the part of the firm that dominates the market, or deliberate, such as high spending on advertising to make it very expensive for new firms to enter the market and establish themselves. Other entry barriers may result from a firm's technological advantage, often protected by patents, or from a firm's existing access to end users as a result of its control of the distribution network. Barriers to entry reduce the level of competition in a market, i. e. they make it less contestable, thereby by enabling incumbents to charge higher-than-competitive prices. See also limit priceIf a particular market for a product is dominated by a large multinational corporation, barriers to entry for smaller firms may be formidable: the multinational may be able to produce the product more cheaply because of economies of scale, the existing product may have built up a strong brand loyalty, the multinational may control the supply of raw material, or own the patent rights to all or part of the production process.
Big dictionary of business and management. 2014.
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barriers to entry — See entry barriers. Practical Law Dictionary. Glossary of UK, US and international legal terms. www.practicallaw.com. 2010 … Law dictionary
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barriers to entry — Restrictions on the entry of new competitors into a *market. Barriers to entry may result from technical and economic factors. For example, the large scale investment in machinery needed for some production processes may be beyond the economic… … Auditor's dictionary
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Entry (economics) — In economics, entry into a market means becoming a supplier of goods or services. Monopolies have an incentive to create barriers to entry … Wikipedia
entry barriers — Factors which impede or deter a new competitor from entering a particular market, such as ownership of intellectual property rights, high investment costs (particularly if such costs cannot be recovered on exit from the market) or the need to… … Law dictionary
entry barrier — UK US noun [C, usually plural] (also barrier to entry) ► something that prevents a company from starting activities in a particular industry: »The internet is a very competitive place to do business, with low entry barriers … Financial and business terms
entry — noun 1 right to enter sth ADJECTIVE ▪ free ▪ The club offers free entry to women on Thursdays. ▪ college, school, university (esp. BrE) VERB + ENTRY … Collocations dictionary