Barriers to entry

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  • Barriers to entry
    • Patents, trademarks and copyright
      • Logos and branding
      • Intellectual property
      • The protection of a blueprint/ invention prevents copies, in areas which have these it is very diffciult for a market to be contestable.
        • Pharmaceticals
    • Vertical integration
      • when the manufacturor controls both supply and distribution
        • Oil- drilling, refinery, garages
      • Control over retail outlets, so that competitors cannot get their product to the market
        • Car firms having shops
        • Breweries owning pubs
    • Absolute cost advantages
      • Low AC's, economies of scale due to size or previous nationalized industry
    • Sunk costs
      • Natural monopoly
      • Pipelines, train-lines, broadband
    • Advertising
      • Builds brands image
      • customer loyalty
      • Market is difficult to enter unless they can match advertising spending
    • Statutory monopoly
    • Anti-competitive behavouir
      • price fixing
      • Lowering prices to keep out competition
      • cartels
      • carving up the market


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