Glossary entry

Market entry barriers are factors that make it difficult or impossible for new companies to enter an existing market. These include high investment costs, legal regulations, strong brand loyalty, patents, economies of scale or exclusive distribution channels. Such barriers protect established companies from competition and secure long-term market shares. They are a central element of strategic market analyses and are often used to assess the attractiveness of a market.

The blockchain is a decentralised, digital database that records transactions securely and transparently. It works by linking blocks of data that are stored in a network of computers, making manipulation virtually impossible. The technology is primarily used in the financial sector for cryptocurrencies such as Bitcoin, but is also used in other areas such as supply chain management, healthcare and digital contracts. Thanks to its security and transparency, blockchain has the potential to revolutionise many industries.

Customer retention refers to a company's ability to retain existing customers in the long term and encourage them to make repeat purchases or continue using services. The aim is to increase customer satisfaction and prevent churn. Customer retention measures include personalised service, loyalty programmes or regular customer communication. A high level of customer loyalty is often more cost-effective than acquiring new customers and makes a significant contribution to the company's long-term success.

The net profit margin shows how much of turnover remains in the company as profit after deducting all costs - including taxes, interest and operating expenses. It is one of the most important key figures for assessing the financial health and efficiency of a company. A high net profit margin indicates a strong business model, while a low margin indicates potential for optimising cost structures.

Gross profit is the difference between a company's sales revenue and its direct production costs.

Non-recurring revenue (NRR) refers to revenue that is non-recurring and does not occur regularly or repeatedly.

Financial leverage refers to the use of borrowed capital to finance investments in order to increase the return on equity. By using borrowed funds, companies can make larger investments than would be possible with pure equity. However, the risk increases, as high debt can also lead to higher financial burdens in the event of losses.

Cost leadership is a competitive strategy in which a company endeavours to be the most cost-effective provider in its industry. Through optimised processes, economies of scale and favourable procurement, products or services can be offered at lower prices - without losing profitability. The aim is to gain market share or better survive price wars. The strategy became particularly well known through Michael Porter's competition models.

Dynamic pricing is a pricing strategy in which prices for products or services are adjusted in real time based on various factors such as demand, supply, competition and customer behaviour. This method enables companies to maximise their revenue by adapting pricing to market conditions and customer preferences.