This study examines the importance of 25 barriers to market entry
in industrial markets. A survey of 93 firms indicates that majority
of business executives consider cost advantages and capital requirements
to enter markets as the two most important barriers to entry followed
by incumbent's having a superior production process, capital intensity
of the market, and customer loyalty. The least important barriers perceived
by the executives in the study are government licensing requirements,
followed by heavy advertising. In addition, the study investigates the
underlying dimensions of barriers to entry in industrial market through
a factor analysis. The results indicate that there are four major underlying
dimensions of entry barriers in industrial markets.
