Question
Entry barriers for Amazon and Alibaba include high set-up and R&D costs, predatory pricing, and network effects. Amazon, for instance, has a vast distribution network and customer base, making it difficult for new entrants to compete. Alibaba, on the other hand, has a strong hold on the Chinese market, creating a barrier for foreign companies.
Exit barriers include highly specialized assets and high exit costs. For Amazon, its highly specialized assets like its advanced warehousing system can be a barrier to exit. For Alibaba, its significant investment in infrastructure and partnerships can make exiting the market costly.
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Use this slide to list all artificial (strategic) and natural entry barriers. These include high set-up and high R&D costs, predatory pricing, network effects, ownership or control and other barriers. With this slide, share your knowledge and data about barriers to exit. These barriers include highly specialized assets and high exit costs: asset write-offs and closure costs and the loss of customer goodwill. Populate this slide with examples of entry and exit barriers backed up by quantitative data to support your findings. We included analysis of entry and exit barriers for Amazon's rival, Alibaba, below.
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