Competitive Barriers to Entry
Size The size of the market, the numbers of players and the intensity of competition is critical. For most start-ups the larger competitors are inclined to leave the smaller firm to its own devices. However, when, after conducting its own environmental scan, it perceives that a threat may indeed exist, competitive action may take place.
Market Share The control of the marketplace by competitors can limit the new venture and its access to customers. Dominance of the distribution system can leave little selection to the entering firm.