What barriers do companies face when entering the market?

Barriers to entry benefit existing firms because they protect their market share and ability to generate revenues and profits. Common barriers to entry include special tax benefits to existing firms, patent protections, strong brand identity, customer loyalty, and high customer switching costs.

What are the 4 barriers to entry?

There are 4 main types of barriers to entry – legal (patents/licenses), technical (high start-up costs/monopoly/technical knowledge), strategic (predatory pricing/first mover), and brand loyalty.

What are the 7 examples of barriers to entry?

There are seven sources of barriers to entry:

• Economies of scale.
• Product differentiation.
• Capital requirements.
• Switching costs.
• Access to distribution channels.
• Cost disadvantages independent of scale.
• Government policy.
• Read next: Industry competition and threat of substitutes: Porter’s five forces.

What are the pricing strategies used by FMCG companies?

Price too highly and nobody will buy. FMCG companies tend to adopt one of 2 pricing strategies: HILO and EDLP. HILO is putting a product at a high shelf price, so you can promote it down to a lower, more attractive price when it matters, to drive impulse purchases.

What is the future of the FMCG sector in India?

The fourth largest sector in the Indian economy is all set for 16\% growth during 2008-09, from a base of Rs. 85470 crores, as predicted by FICCI. Going forward, as anticipated by CRISIL, FMCG sector will touch around Rs. 140000 crores by 2015 (33.4B$).

What are the entry barriers in the service industry?

Entry barriers are always zero in the FMCG industry. Though not as uncomplicated as the FMCG industry, where the knowledge and technology are so easy to acquire, in the service industry too, the concept of entry barriers do not exist to a significant extent. For example, let us take the example of a huge shopping mall.

How do I start a FMCG business?

If it is a FMCG product you must first decide the channel in which you want to place your product. There are number for channels in which you can proceed like Modern Groceries, Departmental Stores, Stationary, Medical stores, Pharmacy, Traditional grocery and wholesale stores.