Barrier to entry

Barriers may arise from scale, sunk costs, access to distribution, switching costs, network effects, intellectual-property rights or legal requirements. Their strength depends on the relevant product, geography, substitutes and ability to overcome them. A barrier can affect incumbent profitability and project risk without guaranteeing permanent monopoly or unlawful conduct. A patent protects defined rights for its applicable territory and term, not necessarily an entire market of substitutes. Analyse the specific mechanism and competitive response rather than list every large start-up cost as proof entry is impossible.