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What Type of Entry Exists If Structural Entry Barriers Are

question 35

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What type of entry exists if structural entry barriers are low,and either (1) entry-deterring strategies will be ineffective or (2) the cost to the incumbent of trying to deter entry exceeds the benefits it could gain from keeping the entrant out?


Definitions:

Scale The Business

The process of expanding a company's operations to handle a growing amount of work or sales in an efficient manner.

Marketability

The ability of a product or service to be sold or marketed effectively to consumers.

Convertible Debt

A type of financing option that allows the holder to convert the outstanding debt into equity, typically shares of the issuing company, under specified conditions.

Venture Capitalist

A professional investor who provides capital to companies exhibiting high growth potential in exchange for equity or an ownership stake.

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