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Oriented Barriers to Entry
Oriented barriers to entry: If the business is on high profit margins it will attract new industry and new firms. When the distribution strategy and expansion techniques will one Company then the customer will look for the quality and performance and new competitors will benefit. New business person will entry in the market which will create the level of high competitiveness and thus it will also produce great benefits to the people which will help the company in association of the business and create productivity as well as competitiveness.
If the market produce lot of leaders, I mean good leaders, they produce great number of competition in the industry. It increase great number of economic condition and also it create lot of good and bad conditions and so as situations become worse for business. It generates good economy because consumers get options of purchase; they get options of strategy management and also choice of purchase.
When there are lot of profits associated with some industry, it creates lot of good things which are associated with that industry then it attracts lot of other business partners to involve in this type of industry it involves them to various other resources, it helps them in going through that business model, they slowly gets attracted with that business which creates great energy and excitement in the market. This whole scenario helps in getting better outputs and the other person try to get the biggest goal, they try to achieve the high ambition and so as they also try to get the great dreams and goals for which they have just started.
Barriers to entry create lot of problems in the market and industry on other hand. It includes various topics for statement.
It includes the form of advertising which creates difficulty for the new competitors who just entered in the firm or new industry; this creates a difference in achieving and gaining the competitive advantage. Firms create slight different product and gain consumer acceptance. There is a requirement of resources and trusted equipments, buildings or raw materials and many more. The resources are very much important in the market because if a single firm has all its resources, has high potential of increase of the resources then there will be other firms which will be unable to generate that much of sales and create high profit and so as revenue. They will not be able to compete in the industry. If there is a strong brand available in the market and people have high faith in that brand and they believe in customer loyalty as well as they feel it can be a barrier to entry. This creates barriers to entry for that other firm or other competitor.
There are other examples which create barriers to entry for the firms. They are the brand needs to be protected legally which gives the firm a great number of potential so as encouragement from long time and from long ago. Then the pricing strategy is also one of the examples which helps in this source and has an important feature which create pricing strategy as per profit and there should be no loss.
When there is heavy amount invested for spending, there is a strong benefit while entering to the industry which creates improvement of production process and it also reduces the cost of unit process and it gives the structural advantage to the firm. The sunk cost used by single firm creates risk for other firms and it is also a barrier to entry in the same industry. When they create great sources of supply chain strategy then also it creates a barrier to entry.
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