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Explain how high start-up costs and complex technology can be barriers to entry.

Sagot :

Answer:

Barriers to entry are a fundamental part of strategic business analysis: the obstacles that block a company's efforts to enter a new market, such as investment requirements, regulation, patents, etc., and that tend to define that market's competitiveness.

Explanation:

What are the effects of complex technology?

Some have correctly argued that the barriers to entry for many tech-centric businesses are low. This argument is particularly true for the Internet where rivals can put up a competing Web site seemingly overnight.

What are the effects of start-up costs?

These are the financial resources required for infrastructure, machinery, R&D and advertising. Startups may get around capital requirements by outsourcing parts of the operation to companies that can leverage existing investments.

What are barriers to entry?

Barriers to entry are factors that prevent a startup from entering a particular market. As a whole, they comprise one of the five forces that determine the intensity of competition in an industry. The intensity of competition in a certain field determines the attractiveness of a market.

Learn more on complex technology here - brainly.com/question/11217613

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