Introduction to Strategic Management

Week 2

Threat of New Entrants

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 Introduction to Strategic Management
Week 2
Threat of New
Entrants Barriers to entry will increase if...

High Economies of Scale

Strong Proprietary Product Differences

Strong Brand Identity

High Switching Cost Proprietary learning curve

High Capital Requirements

Access to necessary inputs
High Absolute Cost Advantages
Difficult to Assess Distribution Channel Proprietary (low-cost) product
design
High level of Expected retaliation

Supportive Govt. / High Govt. Protection

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