Entry barriers

Leads for startups

admin — Fri, 15 May 2009 09:08:57 +0000

In countries where references are important, startups find it difficult to find new customers. However, by using verified lead sources provided by websites like www.customleads.net , it is possible to find customers who are willing to give new companies a chance.

Pliable media

admin — Mon, 09 Feb 2009 15:14:54 +0000

One of the ways big companies make it difficult for competition to survive is by ensuring that the media is pliable and does not carry any unfavorable stories or news about them.

The media is usually dependent on these companies for advertising revenue, so they are usually willing to oblige. The ultimate losers are the consumer and vendors, who do not know the true story until it is too late.

Brainwashing the people

admin — Sun, 08 Feb 2009 07:51:38 +0000

Compared to the other businesses, entry barriers on the internet are lower. So some companies maintain their leadership position by brainwashing people into believing that they are unbeatable and they can do no evil. (very similar to those used by terrorist organisations recruiting gullible teenagers). In reality, they employ the most underhand tactics online.

Price wars

admin — Sat, 31 Jan 2009 04:09:51 +0000

When product or service is launched, the new entrant tries to gain marketshare from the older, more established companies by offering discounts. The established companies may remain complacent and not do anything, especially if their product quality and customer support cannot be matched.

If the established companies is financially strong, they can try to kill the competition by offering their product at a even lower price. Finally, the company that can sustain losses for the longest period of time will dominate the market.

Dumping

admin — Fri, 30 Jan 2009 04:24:00 +0000

In some countries, the cost of manufacturing is very low due to the low cost of raw material, manpower and government subsidies. These countries are able to export their products at a very low cost.

The manufacturers in countries which import these cheap products are not able to compete, as a result of which the industry is destroyed. The manufacturers association will lobby the government to impose an anti dumping duty, an import tax, which makes the imports prohibitively expensive and protect the local industry.

Monopolies

admin — Thu, 29 Jan 2009 14:23:28 +0000

Since monopolies can often dictate the price for an essential product or service, most government have regulations and laws to prevent the formation of monopolies. In case a company seems to be taking a very large market share, leaving the customer with no choice, the government usually takes legal action.
This usually involves:
1. Splitting the company into smaller organizations
2. Imposing fines and other financial penalties

Internet entry barriers

admin — Wed, 28 Jan 2009 21:48:41 +0000

For many products online, marketing or increasing the level of awareness is the main entry barriers. This is especially true for consumer products. That is why people spend a lot of time cultivating gurus and experts who can hype the product.

Manufacturing entry barriers

admin — Sun, 25 Jan 2009 11:37:23 +0000

Compared to software and internet, the entry barriers for any manufacturing related operation are very high. Thousands or millions of dollars have to be spent on procurement of land, equipment, installation of equipment and raw material, before a product is actually manufactured and sold. Permission has to be taken from several government organisations. Economies of scale make it easier for large companies to manufacture a product cheaply by using automated systems.

Search engine monopolies

admin — Fri, 23 Jan 2009 14:42:16 +0000

One of the reasons why there are so few popular search engines is the entry barriers to search. Not only does the algorithm have to yield the most accurate results, the company has to invest millions of dollars in data center, hardware and internet connectivity

Business ideas

admin — Sun, 11 Jan 2009 12:32:03 +0000

One of the main fears while sharing a business idea is that it can be stolen. People may spend a lot of time , money and other resources spying on you to find out your future plans . But no two people are alike and they will find it difficult to find someone who can implement the idea, the way you envisaged it.