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Topic: pick a company ( a company of your choice )

Address the threat of entry is governed to a large degree by the height of the industry’s entry barriers. High barriers reduce the threat of potential entry, whereas low barriers enable easier entry. Entry barriers are high under the following conditions:

There are sizable economies of scale in production, distribution, advertising, or other activities.

Incumbents have other hard to replicate cost advantages over new entrants.

Customers have strong brand preferences and high degrees of loyalty to seller.

Patents and other forms of intellectual property protection are in place.

There are strong “network effects” in customer demand.

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