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Home→The Westburn Dictionary of Marketing→B→barriers to entry

barriers to entry

Definition:
Freedom of entry to an industry is widely regarded as a key indicator of an industry's competitiveness, such that in the case of a monopoly, by definition, no other firm can enter, while in perfect competition there are no barriers to entry. From the firm's viewpoint, the greater the barriers to entry the less the threat from new competitors, and the more secure its own position. Among the major barriers to entry may be noted: (a) ECONOMIES OF SCALE; (b) product differentiation; (c) capital requirement; (d) switching costs; (e) access to distribution channels; (f) cost disadvantages independent of scale; (g) government policy.

Cross-References:
[economies of scale]

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© Westburn Publishers Ltd 2002, The Westburn Dictionary of Marketing edited by Michael J Baker, ISBN 978-0-946433-01-8. www.themarketingdictionary.com. Entry: [Michael J. Baker], [1998].