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  • 81 barrier to entry

    Gen Mgt
    a factor preventing a company from entering a market. A barrier to entry may be created, for example, by the fact that current companies in that market have patents so that goods cannot be copied, or by the high cost of advertising needed to gain any market share. There may be strong brand loyalty to an existing product, or a large company may be able to produce goods very cheaply, whereas a small newcomer would have to charge higher prices. If too many barriers to entry exist, then competition within that market will be limited.

    The ultimate business dictionary > barrier to entry

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