Threat of New Entrants
In the smart connected world, new entrants face a
myriad of new barriers, beginning with high fixed costs of
highly-complex product design, embedded technology and
numerous layers of new IT infrastructure. Widening
product definitions can result in a raise in barriers to
entrants. Barriers to entry also go up when active occupants
capture key first-mover benefits by gathering and accruing
product data and using it to enhance products and services
and to redefine after-sale services. Complex product design
and skyrocketing costs will form significant new barriers
for new entrants into the market. Other contributing
obstacles to entry may include heightened switching costs
and customer loyalty.