For this unit's discussion, choose at least two of the barriers to entry that affect the market in which your business operates. Explain to the class how these barriers affect your company. If you prefer, you may find an article that tells a story about barriers to entry having an effect on a certain company or market.© BrainMass Inc. brainmass.com October 25, 2018, 8:50 am ad1c9bdddf
Barriers to entry are either the physical, monetary, and political forces that prevent an enterprise to enter the market. These barriers will largely depend on the type of market of your business.
It would not be easy to enter the oligopolistic market like a.) Software operating system, b.) Banks, c.) Pharmaceutical and d.) Health insurance businesses. This is due to the reality that each of these businesses has, according to AmosWeb (2013), (1) ...
There are barriers to entry that affects old and new businesses. The discussion centers around oligopolistic market and how entry barriers influence its business operations. The discussion also lists links to online articles that tell a story about barriers to entry.
Advanced Topics in Business Strategy -- Barriers to Entry and Limit Pricing
Suppose that, prior to other firms entering the market, the maker of a new smartphone (Way Cool, Inc.) earns $100 million per year. By reducing its price by 50 percent, Way Cool could discourage entry into â??itsâ? market, but doing so would cause its profits to sink to -$5 million. By pricing such that other firms would be able to enter the market, Way Coolâ??s profits would drop to $75 million for the indefinite future. In light of these estimates, do you think it is profitable for Way Cool to engage in limit pricing? Is any additional information needed to formulate an answer to this question? ExplainView Full Posting Details