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Entry Barriers
Obstacles that make it difficult for new competitors to enter an industry.
Implications
Factors that make it difficult for new competitors to enter an industry, such as high capital requirements, economies of scale, strong brand loyalty, or regulatory hurdles, often influencing market competitiveness and profitability.
Example
Example: The pharmaceutical industry has high entry barriers due to the need for extensive R&D, regulatory approval, and significant capital investment, making it challenging for new firms to compete with established players.
Related Terms
Different from exit barriers, which make it difficult for companies to leave an industry, entry barriers prevent or discourage new entrants from competing in the market.
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