Definition

Barriers to Entry

 Barriers to Entry are the obstacles that a firm must overcome to enter an industry. The barriers can be tangible or intangible. The tangible barriers include capital requirements, technological know –how ,resources, and the laws regulating entry into an industry. The intangible barriers include the reputation of existing firms, the loyalty of consumers to existing brands, and access to the managerial skills required for successful operation in an industry.

Share it:  Cite

More from this Section

  • Employee theft
    Employee theft is defined as any unauthorized taking of company property by employees ...
  • Control process
    The control process is a three-step process of measuring actual performance, comparing ...
  • Polycentric attitude
    A polycentric attitude is the view that employees in the host country (the foreign country ...
  • Recruitment
    Recruitment is locating, identifying, and attracting capable applicants. ...
  • Making a Resource Valuable
    Before proceeding to explain each basis for making resources valuable, we suggest that ...