Barriers to entry are the challenges that new firms face in entering a market. They may make it difficult to acquire the resources that companies need to be successful, or attract customers to the firm. Essentially they benefit incumbent firms, protecting incumbent firms from new competitors.
If you are already in the industry, high entry barriers may be a good thing – they help protect your industry from new competitors. Indeed, entry barriers (or conversely the threat of new entrants) are one of the forces in Porter’s Five Forces framework, with high barriers to entry associated with high industry profitability.
Latest articles on industry entry barriers
Why economies of scale can act as a barrier to entry
This article unpacks how economies of scale can act as a barrier to new firms entering a market, with examples of disadvantages new firms face.
Preventing strategic imitation: The difference between entry barriers and mobility barriers
This article explores the role of entry barriers and mobility barriers at preventing new firms from entering your market, or existing firms from converging on your position.
Industry entry barriers: What they are, and why they are important to consider
This article explores industry entry barriers: What entry barriers are, why you need to be aware of them, and how to overcome the barriers.
Why learning curve effects can act as a barrier to entry?
This article explores some of the specific ways that learning curve effects can act as a barrier to entry.
How switching costs can act as a barrier to entry
This article explores the impact that high switching costs can have on industry entry barriers – why high switching costs can make it difficult for new firms to enter the market.
Entering an industry with high entry barriers: Approaches for overcoming entry barriers
This article explores approaches for new firms to overcome entry barriers – to work around difficulties that traditionally make it hard for new firms to successfully enter an industry with high barriers to entry.
How restricted access to sales channels can act as a barrier to entry
This article explores how access to distribution channels can act as a barrier to entry and ways over overcoming it.
Why is slow industry growth a barrier to entry?
Learn why a slowly growing or decline industry can be a barrier to entry for new firms
Why brand reputation can be a barrier to entry
Under what situations does a brand act as an entry barrier for firms? This article explores the impact of established brands on firms entering a market.
The importance of entry and mobility barriers for a blue ocean strategy
One of the key dangers of pursuing a blue ocean strategy is imitation from others – this article explores why entry and mobility barriers are important for maintaining the blue ocean
The difference between industry entry barriers and exit barriers
Explore the difference between industry entry barriers and industry exit barriers and the different ways that they impact industry profitability.
Why economies of scale can act as a barrier to entry
This article unpacks how economies of scale can act as a barrier to new firms entering a market, with examples of disadvantages new firms face.
Preventing strategic imitation: The difference between entry barriers and mobility barriers
This article explores the role of entry barriers and mobility barriers at preventing new firms from entering your market, or existing firms from converging on your position.
Industry entry barriers: What they are, and why they are important to consider
This article explores industry entry barriers: What entry barriers are, why you need to be aware of them, and how to overcome the barriers.
Why learning curve effects can act as a barrier to entry?
This article explores some of the specific ways that learning curve effects can act as a barrier to entry.
How switching costs can act as a barrier to entry
This article explores the impact that high switching costs can have on industry entry barriers – why high switching costs can make it difficult for new firms to enter the market.
Entering an industry with high entry barriers: Approaches for overcoming entry barriers
This article explores approaches for new firms to overcome entry barriers – to work around difficulties that traditionally make it hard for new firms to successfully enter an industry with high barriers to entry.
How restricted access to sales channels can act as a barrier to entry
This article explores how access to distribution channels can act as a barrier to entry and ways over overcoming it.
Why is slow industry growth a barrier to entry?
Learn why a slowly growing or decline industry can be a barrier to entry for new firms
Why brand reputation can be a barrier to entry
Under what situations does a brand act as an entry barrier for firms? This article explores the impact of established brands on firms entering a market.
The importance of entry and mobility barriers for a blue ocean strategy
One of the key dangers of pursuing a blue ocean strategy is imitation from others – this article explores why entry and mobility barriers are important for maintaining the blue ocean
The difference between industry entry barriers and exit barriers
Explore the difference between industry entry barriers and industry exit barriers and the different ways that they impact industry profitability.