barriers to entry

Meaning

This term refers to the economic, regulatory, or technological obstacles that prevent new competitors from easily entering an industry. High start-up costs, strict government regulations, and strong brand loyalty are common examples of these obstacles. The tone is formal and analytical, typically used in market research, strategic planning, and economics.

Examples

• The high cost of research and development creates significant barriers to entry in the pharmaceutical industry.

  The high cost of research and development creates significant barriers to entry in the pharmaceutical industry.

• Strict government licensing acts as one of the primary barriers to entry for new telecommunications companies.

  Strict government licensing acts as one of the primary barriers to entry for new telecommunications companies.

• Tech giants often build ecosystems that establish high barriers to entry, making it difficult for startups to compete.

  Tech giants often build ecosystems that establish high barriers to entry, making it difficult for startups to compete.

• Before launching the product, we need to analyze the barriers to entry in the European market.

  Before launching the product, we need to analyze the barriers to entry in the European market.

• Low barriers to entry in the e-commerce sector have led to intense competition and thin profit margins.

  Low barriers to entry in the e-commerce sector have led to intense competition and thin profit margins.

Common Mistakes

• ✗ There are many barriers of entry in this market.

  ✓ There are many barriers to entry in this market.

  The correct preposition is 'to', not 'of' or 'for'. It is always 'barriers to entry'.

• ✗ The company faced a big barrier to enter.

  ✓ The company faced a big barrier to entry.

  Use the noun 'entry' instead of the verb 'enter' in this standard business collocation.

Related Expressions

Practice

• Patents and proprietary technology serve as strong ___ for potential rivals.

  💡 Obstacles preventing new competitors from joining an industry.

  Show answer

  barriers to entry

• Because the software market has low ___, hundreds of new apps are released every day.

  💡 Low obstacles for new businesses to start selling.

  Show answer

  barriers to entry