I have been trying to understand what makes something a barrier to entry in precise terms. I ideally would like some kind of "theory of barriers to entry." Not just examples, which are easy to find, but rather key characteristics that makes something a barrier to entry.

Does such a thing exist? If so, who are some example authors that I could read who target this issue?


1 Answer 1


Analysis of strategic advantage using a Venn diagram (short video):


Short summary article of Competition Demystified by Greenwald and Kahn (barriers to entry create competitive advantage for managers and investors):


Barriers to entry consist of supply advantages, demand advantages, and economies of scale.

Short video criticism of Porter's Five Forces - Competition Demystified:


Short video summary of Competition Demystified:


Intangible (intellectual) property law, for example, erects legal barriers to entry for a proprietary product or service. If there are no barriers to entry then competitors enter the market easily to compete on price and volume and erode the advantage.


Your Answer

By clicking “Post Your Answer”, you agree to our terms of service and acknowledge you have read our privacy policy.

Not the answer you're looking for? Browse other questions tagged or ask your own question.