Buscar
Estás en modo de exploración. debe iniciar sesión para usar MEMORY

   Inicia sesión para empezar


Por supuesto:

Industrial Organisation 2022

» Iniciar este curso
(Practica preguntas similares gratis)
Pregunta:

Why is product differentiation an entry barrier?

Autor: Hjalmer Pedersen



Respuesta:

Product differentiation can act as an effective barrier to entry, customers are often loyal to existing products. This creates additional costs for new companies. There are high sunk costs for new businesses, for example to advertise themselves. There may be economies of scale to existing companies in advertising. Product differentiation may for example arise from: • Research and patents - new, improved, differentiated products • Service (pre- & post-sale) • Advertising, creating a brand (necessary to be constantly on top) • First mover advantage: The company had time to build up an effective customerbase


0 / 5  (0 calificaciones)

1 answer(s) in total