Barrier to Entry


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Barrier to Entry

A high cost or other difficulty that prevents or makes it difficult for new businesses to enter an industry. For instance, high regulation or customer loyalty may be barriers to entry for a new company. Barriers to entry provide a distinct advantage for companies already operating; these companies have high profit margins and few competitors. Examples of industries with barriers to entry are the telecommunications and energy industries, because of the high cost of infrastructure necessary to begin operations. See also: Barriers to exit.
References in periodicals archive ?
Although, this is somewhat mitigated by employment diversity and the high barrier to entry characteristics of BXP's markets and sub-markets.
And now Motorola's semiconductor sector is working to lower the barrier to entry for other manufacturers by offering them a flexible, scalable platform for 2.
The second major barrier to entry that exists is the strong brand equity of the company's beer products.
The last major barrier to entry that exists is the low price that Chileans pay for beer.
Making USB hardware control available from a user-mode application development environment lowers the barrier to entry for developers bringing up new USB solutions on Windows.
By lowering the barrier to entry, Xpress makes it easy for an organization's partners to become part of an extended, flexible, virtual corporation," said Larry Alston, chief technology officer and vice president, product strategy, eXcelon Corporation.
of the industry average; and provide a barrier to entry by