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Barriers to entry definitionQuestion What is the definition of "barriers to entry"?
Answer Barriers to entry are those conditions that make it difficult for a business to enter a particular market segment against existing competitors. Here are some typical barriers to entry:
- Capital requirements - Government policies or regulations - Intellectual property such as technology, patents, trademarks and trade secret - Brand identity or other customer loyalty - Time for development - Economies of scale - Geographic location of the incumbents - Inelastic demand - Aggressive competitive price in defensive situations - Vertical integration of the incumbents A business or marketing plan should identify barriers to entry and addresses strategies to deal with each one. 
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