Barriers to market entry: Protection from new competition

April 16, 2025

Barriers to market entry 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.