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(the 5 Forces Framework (Entrants (Entry barriers (natural entry barriers,…

- - - - natural entry barriers
        
        capital requirements
        
        large investment is risky and irreversible.
        
        cause difficulty in developing a cost-competitive production base
        
        putting new entrants at a disadvantage when producing or supplying the industry's product or service
        
        product differentiation
        
        customers are loyal to existing products and brand
        
        intangible product attributes and emotional attachment
        
        learning curve economies
        
        costs decline with total cumulative production over time
        
        e.g. aircraft, disk drives, LCD screens
        
        access to distribution channels
        
        shelf space may be limited
        
        logistics of distribution may be difficult
        
        cause difficulties in reaching or winning over customers and also building demand
        
        scale and scope economies
        
        scale economies
        
        costs decline with scale of production
        
        e.g. oil refining, semiconductors, steel, software
        
        scope economies
        
        costs decline when multiple products are made
        
        e.g. car models built on same platform, online retailing
        
        and other advantages
        
        privileged access to raw materials or favorable location
        
        Government regulations make it costly to enter
        
        difficult-to-imitate technologies and processes
        
        cause difficulties in copying and reproducing
      - Expected Retaliation
        
        strong firms with reputations for retaliating, or operating in a slow growth industry