Essay: Barriers that Hamper the Capacity of a Competitor

Sample Essay

Barriers that hamper the capacity of a competitor or company to leave the market is a totally different scenario from the entry part. Once entered the market, further obstructions come in way to hinder, and when a competitor decides to leave, there are certain issues that come in the way.

The first of it, is the investment in the equipment which is specifically bought to cater the needs of the organization’s manufacturing, in the retail industry it’s the huge shelves placed in the warehouse which cannot be readily used somewhere else, secondly specific soft ware which are implement to maintain the databases and customer relationship modules. On the other hand, extremely dedicated skill by the market participants which cannot be operated in other markets or industries tend to be an obstruction to leave the industry. Thirdly, and above all, far above the ground levels of committed preset expenses have a propensity to prevent the company from leaving the industry (Costco Wholesale).

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