Barriers to entry
- Created by: Francesca Hill
- Created on: 01-06-14 15:38
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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
- when the manufacturor controls both supply and distribution
- 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
- Patents, trademarks and copyright
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