![]() Retaliation: Existing companies in the industry sometimes resist and deter new entrants from entering their competition. ![]() ![]() Government regulations: Government and regulatory requirements may limit how a company can conduct business and require permits or licenses for entry into the industry. Access to suppliers and distribution channels: New entrants may struggle to find access to suppliers and distribution channels since many already provide service to existing companies.īarriers to exit: When a company can't easily leave the competition due to factors such as high exit costs, new entrants may be hesitant to join the environment in case their business doesn't succeed.īrand loyalty: If an industry consists of companies with high levels of brand loyalty, it can be challenging to enter the competition.Ĭapital requirement: Certain industries have high capital costs, making entry limited to those who have the necessary resources.Ĭost advantages: Companies that currently exist in the industry can sell their products or services at a price lower than new entrants.ĭifferentiated products: If a new entrant plans to sell a product that's highly differentiated by the current company, they may have to come up with unique, new features in order to compete. ![]()
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