Barriers to entry

Japanese: 参入障壁 - さんにゅうしょうへき

A factor of the relative difficulty that a new company faces when entering a specific industry or product market. It is one strategic criterion when deciding on a strategy for diversification or new product development in management. Reasons for the existence of barriers to entry include (1) the existence of an oligopoly due to economic concentration, which results in a large minimum required scale, (2) the absolute production costs of new companies being higher than those of existing companies, and (3) strong product differentiation, which requires new companies to spend more on advertising and sales promotion. Recently, this term is also used when laws or customs are obstacles for foreign companies entering Japan.
→ Related topics Economies of scale | Industrial organization | Bain

Source : Heibonsha Encyclopedia About MyPedia Information

Japanese:

新規企業が特定の産業や製品市場に進出するときに受ける相対的な困難の要因。経営において多角化や新製品開発の戦略を決定する際，一つの戦略基準となる。参入障壁の生じる理由は，（１）経済の集中による寡占化が行われ，最低必要規模が大きい，（２）新規企業の絶対的生産費用が既存企業よりも高い，（３）製品差別化が強く，新規企業は広告や販売促進への支出を多く必要とすることなどが挙げられる。最近では海外企業が日本に進出する時に，法律や習慣がその妨げになる場合もこの言葉を使う。
→関連項目規模の経済｜産業組織論｜ベイン

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