How can Barriers to Entry be caused by Firms already in the Industry? (Incumbent Firms)

-Innovative Product or Service gives the Incumbent Firm a Boost over Rivals, making it Hard to overcome. If it’s Patented (Legally Protected) then its Game Over -Branding means Consumers will prioritise the Product over others, hampering New Firms -Strong Brand because the Firm just makes the Best Products or Advertising. Becomes Expensive and Time Consuming for New Firms to challenge the World Leading Firm -Aggressive Pricing Strategies can force new Firms out. Incumbent Firms can lower Prices that New Firms can’t match due to Economies of Scale (Predatory Pricing) -Threat of a Price War can be the disincentive required for no new Firms to enter