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barriers to entry


Definition

Circumstances particular to a given industry that create disadvantages for new competitors attempting to enter the market. These may include government regulations, economic factors, and marketing conditions. Barriers to entry may be created, for example, when companies already in a market have patents that prevent their goods from being copied, when the cost of the advertising needed to gain a market share is too high, or when an existing product commands very strong brand loyalty.

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4 Categories of Sustainable Competitive AdvantageTrue sources of sustainable competitive advantage fall into four categories [according to The Little Book That Builds Wealth]: 1) Intangible assets, such as brands, patents or regulatory licenses; 2) ... Read more


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