Which of the following statements best defines a barrier to entry?
A) A barrier to entry is anything that stops a firm not currently operating in an industry from joining that industry.
B) A barrier to entry is anything that stops an organisation from moving from one strategic group to another.
C) A barrier to entry is anything that stops a firm in the industry developing a new product for a market segment not currently served.
D) A barrier to entry is anything that makes an identified market segment unattractive to firms.

Question

Quizplus · Accepted Answer

A barrier to entry refers to obstacles that prevent new competitors from easily entering an industry or area of business, which is best described by option A.

Which of the Following Statements Best Defines a Barrier to Entry