Barrier Of Entry
Barriers to entry are obstacles that make it hard for a new company to compete in a market. They can include high startup costs, exclusive supplier or distributor contracts, patents, or brand loyalty. When barriers are high, existing firms are more protected from rivals. Operations choices such as exclusive agreements can be used to raise those barriers.
Any factor that may prevent a new competitor from entering a market. It could be natural barriers, like a required technology or skill that is hard for competitors to get, or artificial, like a legal protection of a monopoly.
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