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Industry Structure Analysis
2. Threat of Entry / Barriers to Entry
2. Threat of Entry / Barriers to Entry
In relative terms, threat of entry into the << Insert Industry Name
>> industry is << choose one: Very Low; Low; Moderate; High; Very
High >>. Frequent sources of barriers to entry include:
- Economies of Scale - is << choose one: very low, low,
moderate, high, very high >> because....
- Proprietary Product Differences - << choose one: is; is not
>> a major barrier to entry. For standard << Insert Industry
Name >> products, all competitors provide basically the same.... and
there are few proprietary product differences. For non-standard offerings,
such as....... a few competitors do have a unique offering which cannot be
easily duplicated.
- Brand Identity - << choose one: is; is not >> strong
enough that a new entrant << choose one: could; could not >>
enter the industry and overcome lack of brand identity.
- Switching Costs - are currently << choose one: very low, low,
moderate, high, very high >>. This is because....
- Access to Suppliers - << choose one: does; does not >>
represent a barrier to entry. A new entrant's access to industry
suppliers....
- Capital Requirements - are << choose one: very low, low,
moderate, high, very high >> to become a << Insert Industry Name
>> competitor and << choose one: do, do not >> pose a
barrier to entry. The cost to enter the industry from a standing start would
be approximately.....
- Expected Retaliation - << choose one: is, is not >> a
major concern for a new entrant. The << Insert Industry Name >>
industry << choose one: acts, does not act >> in concert
following an industry leader in retaliatory moves against a new entrant.
- Government Policy - << choose one: limits; does not limit
>> a new entrant from entering the industry. Government
regulations....
Potential competitors include....
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