Definitions
New Entrant:
An existing company or a startup that has not previously competed ,its geographic market. It can also be an existing company that through a shift in business strategy begins to compete.
Substitute Product or Service:
An alternative to doing business. This depends on the willingness of the buyers to substitute, the relative price/performance of the substitute and/or the level of the switching cost.
Possible Barriers to Entry
• Economies of scale.
• Strong, established cost advantages.
• Strong, established brands.
• Proprietary product differences.
• Major switching costs.
• Limited or restrained access to distribution.
• Large capital expenditure requirements.
• Government policy.
• Definite strong competitor retaliation.