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Brand Loyalty
New entrants to an industry face existing products and services with loyal customers, so an extensive marketing campaign focused on making the customer aware of the benefits of the new venture's products will be required rent apartment Bucharest. The cost of undertaking this strategy can be a significant barrier to entry unless customers are dissatisfied with the competing brands. On the Internet, it has become clear
 The Foundations of Entrepreneurship
 
that when they set up shop in cyberspace, companies like Barnes and Noble and The Gap retain the brand presence they have already established in their bricks-and-mortar stores—they can be profitable immediately. Alternatively rent apartment Bucharest, it takes a company like Amazon (with the strongest online brand recognition) years to become profitable, if ever.
Capital Requirements
The cost of entering many industries is prohibitive for a new venture. These costs may include up-front advertising, research and development (R&D), and expenditures for plant and equipment to compete on par with established firms in the industry. Entrepreneurs often overcome this barrier by outsourcing to or partnering with established companies to leverage their resources and industry7 intelligence.
Switching Costs for the Buyer
Buyers in most industries don't readily switch from one supplier to another unless there is a demonstrated reason to do SO. Switching costs the buyer money and time. For example, users of the Microsoft Windows graphical interface will not readily switch to a different system because they have spent a lot of time learning the Windows environment and arc used to it. A new" entrant, like Linux, will need to spend considerable time and money convincing customers that the product is worth switching to.

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Access to Distribution Channels
The new venture must persuade established distribution channel members to accept the new product or service and must prove that it will be beneficial to distributors to do so. This persuasion process can be costly for the new venture. One solution is distributing via the Internet, which is a direct method of reaching the customer.

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Proprietary Factors
Barriers to entry also include proprietary technology, products, and processes. Where established firms hold patents on products and processes that the new venture requires, they have the ability to either keep the new venture out of the industry or make it very expensive to enter. Most favorable location is another form of proprietary barrier. Often entrepreneurs will discover that existing firms in the industry own the most advantageous business sites, forcing the new venture to locate elsewhere. The Internet diminishes such location advantages somewhat, but the ability of customers to find a Web address quickly through the major search engines also becomes a location advantage. These proprietary factors are all substantial barriers to entry for a new venture.