E-Marketing Professionals

New entrants

New entrants can 

potentially serve to increase the degree of competition in an industry. In turn, the threat of new entrants is largely a function of the extent to which barriers to entry exist in the market. Some of the key factors affecting these entry barriers include:

Economies of scale
Product differentiation and brand identity
Capital requirements
Switching costs
Government policy
Access to distribution

Because high barriers to entry can make even a potentially lucrative market unattractive (or even impossible) to enter for new competitors, the marketing planner should not take a passive approach but should actively pursue ways of raising barriers to new competitors.