entry barriers

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The restrictions or factors which make it difficult for new entrants to expand into lucrative markets. These barriers can be, for example, the need for initial large capital input to develop an infrastructure (for example, transport services), or economies of scale of more established organizations (for example, oil operations), or large marketing expenditure (for example well established consumer brands), or control of massive databases (for example Internet search companies). See also competition; competitive advantage.

Subjects: Marketing.

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