EXAMPLE OF THREAT OF NEW ENTRANTS DRIVERS

The best example of this type of barriers to entry is the Jio mobile network. Pricing strategies play an important role in stopping the new entrants from entering the market as well as giving tough competition to the competitors in the market. Related: Marketing Strategy of Crossword вЂ“ Crossword Marketing Strategy #2 Pricing Strategies: For example, The budget limit of the organization to acquire the latest technology or to advertise and market the new product or to acquire a suitable place to set up the plant for the production process and on the other hand, external factors can be the factors such as state governmentвЂ™s clearance to start the business, patent and licenses required for the production, and existing competitors in the field. There are several obligations that a startup company has to fulfill before entering a market and to start making profits.ДЇor example, every state has different rules and regulations and requirements for different types of businesses which are required to be followed and fulfilled.ДЇactors which makes the entering of a startup difficult to enter a particular market could be both internal as well as external.

In simple words, we can say that barriers of entry are the obstructions faced by a new startup company when it tries to enter a new business.ДЄ market is called attractive if there is intense competition to enter that market. Examples of Companies with high barriers to entry:.#2 Competition among the companies in the industry:.#1 The threat of new entrants in the industry:.Michael porter classification of barriers to entry.Examples of Barrier of entry in different industries:.#1 Access to raw material required for production:.A) Structural or natural barriers of entry.Furthermore the Threat of New Entrants decreased since companies have to make high investments in Technology which has a deterrent effect on new potential market entrants. An example is that the Bargaining Power of Buyers increased due to the access to much more information because of the Internet. The three new forces just influence each of the Five Forces. The basic idea that each company is operating in a network of Buyers, Suppliers, Substitutes, New Entrants and Competitors is still valid. PorterвЂ™s Five Forces cannot be considered as outdated.

The outcome of this critical literature review shows that the three new forces changed the industry structure but they do not restructure the model.

EXAMPLE OF THREAT OF NEW ENTRANTS DRIVERS

Nowadays Technology is one of the most important drivers for change and not only important for the implementation of change. Moreover the last decades have shown that Information Technology became more and more important. The вЂNew EconomyвЂ™ is not comparable with the вЂOld EconomyвЂ™, which is the basis of the Five Forces model. Due to an increasing significance of Digitalization, Globalization and Deregulation, the industry structure of the вЂOld EconomyвЂ™ changed fundamentally. Within the last decades, the model has attracted some criticism because of the developing Internet economy. PorterвЂ™s Five Forces model is a powerful management tool for analysing the current industry profitability and attractiveness by using the outside-in perspective. Are PorterвЂ™s Five Competitive Forces still Applicable? A Critical Examination concerning the Relevance for TodayвЂ™s Business.

Example of threat of new entrants