Online Genius Podcast

In today’s marketing fundamentals episode, we’re talking about an important economic concept: barriers to entry. These are factors that make it more difficult for a newcomer to enter a market. Barriers to entry protect existing businesses from competition and tend to allow monopolistic pricing. Let’s dive in and discuss why you need to create barriers to entry in your online business. WHAT YOU’LL LEARN IN TODAY’S EPISODE: Where barriers to entry are high, you tend to have higher prices and profits Where barriers to entry are low, you have to bring prices down because of competition Regulatory and professional requirements are examples of barriers to entry High start-up costs in a market create a barrier to entry Switching costs are another type of barrier to entry (e.g., banking) Technology requirements can create also a barrier to entry In the online space, there aren’t many barriers to entry — this means it’s easier for you to get started but it’s also easy for your competitors One way switching costs show