Course 201: Understanding a Business
Barriers to Entry
In this course
1 Introduction
2 Barriers to Entry
3 Price Elasticity
4 Substitutes
5 Capital Intensity
6 Market Penetration
7 Regulation

If you decide to go into business, you don't want a bunch of imitators slurping away your business. You want barriers to entry. Utilities, brand-name powerhouses such as Coca-Cola KO, and newspapers are the best examples of companies that enjoy nearly impregnable competitive positions. Starbucks, on the other hand, is in an industry with low barriers to entry. In trendy neighborhoods of most large cities, there's a coffee shop (or two, or three) on every block, most of them opened since the beginning of the Starbucks craze.

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