Which of the following could be barriers to entry for Brian Air?

Brian Air is a company that is trying to break into the air transport market .

Which of the following could be barriers to entry for Brian Air? Select THREE
A . economies of scale
B. access to capital
C. licences and permits
D. health and safety
E. ethical sourcing

View Answer

Answer: A,B,C

Explanation:

Barriers to entry are economies of scale (in the air travel industry you can’t just start off small and grow), access to capital (you need to already have a lot of money to buy airplanes) and licences and permits (you need to ensure you have the correct licences to fly planes). These are listed on p.41. Other barriers include; strong brand identity already dominant in the market, high switching costs for buyers, access to distribution networks and government policy.