Industry Entry Barriers

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