Please enable JavaScript.
Coggle requires JavaScript to display documents.
Barriers to entry (Retaliation (increased advertising, sales promotion,…
Barriers to entry
Retaliation
increased advertising
sales
promotion
aggressive price cutting
litigation
Economies of scale
efficiency requires large-scale operation
entering on a small scale and accepting high unit costs
capital or research or advertising intensive
entering on a large scale and running the risk of drastic underutilization of capacity
Product differentation
established firms possess the advantages
of brand recognition and customer loyalty
spend heavily on advertising and promotion
reputation and close customer–supplier relationships
Access to channels of distributors
risk aversion by retailers
the fixed costs associated with carrying
an additional product result in distributors’
Limited capacity within
distribution channels
Government and legal barriers
compliance costs
regulation and
environmental and safety standards
Capital Requirements
capital costs
Absolute cost advantage
acquisition of low cost sources of raw
materials or economies of learning