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One of five forces is barriers or threats of entry to entrants.
One factor of barriers to entry is product differentiation. I have quoted also please explain.
“Product differentiation, where established firms have good brand image and customer loyalty. The costs of overcoming this can be prohibitive.”
What it means?One of the forces is threat of entry. A barrier to entry, such as the requirement for high amounts of capital, weakens that force.
Similar,y, if a company makes distinctive products and it has a strong brand, then it will be harder for new warrants to steal market share and therefore this weakens the threat of entry.
For example, if you decided to start making mobile phones you have to compete with the Apple brand.
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