barrier-to-entry

Vocabulary Word

Definition

In simple terms, 'barrier-to-entry' is something that makes it difficult for you or your business to enter a new market, such as a large amount of startup capital required.

Examples in Different Contexts

Barrier to entry in business strategy refers to obstacles that protect a market from new entrants. A business consultant might advise, 'Understanding barriers to entry is crucial for assessing market attractiveness and competitive landscape.'

Practice Scenarios

Technology

Scenario:

The patent rights on this tech are really solid. This would make it very difficult for other entities to copy or build upon our innovation.

Response:

If the barrier to entry is patent protection, we need to ensure we maintain its enforcement to keep competitors at bay.

Business

Scenario:

Our investment in this new venture should be carefully considered. The telecom industry in our target region is well established and would require a significant capital outlay.

Response:

Due to the high financial barrier to entry, we might look at other potential markets to invest in.