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As an example, since the 19th century De Beers managed almost each of the diamond mines in South Africa. This allowed De Beers to ascertain the level of diamonds it wished to promote to and at what price it wanted to offer the diamonds for.
Other forms of barrier to entry that avoid new competitors from simply entering a business sector involve Particular tax Added benefits to existing companies, patent protections, potent brand name identification, purchaser loyalty, and higher buyer switching costs.
You will discover too many shut substitutes that customers should purchase as opposed to a pen that clicks which include pencils and pens that don’t click on.
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It may need corporations to obtain licences before starting the companies or The federal government could declare the limitation towards the use of Uncooked supplies. The government could also provide subsidiaries to selected organizations which makes it truly tricky for Other individuals to cope up with them.
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