Barriers To Entry

Anything that prevents new competitors from easily entering an industry.

If a market has significant economies of scale which have already been exploited by the incumbents, new entrants are deterred.

Vertical integration can tie up the supply chain making it difficult for new entrants. Such as a company having its own retailer.

Costs that cannot be recovered once you leave the industry

A firm may deliberately lower their prices to try to force other firms out of the industry

Products are sold by a supplier at a price lower than average cost to make it unprofitable for other players to enter the market

Agreement to sell a substantial portion of its products to a particular buyer who agrees to buy a portion of the other seller