Innovation One way entrepreneurs can mitigate the threat of new entrants is through continuous innovation. By constantly improving their products, services, and processes, they can stay ahead of potential new competitors.
Building Strong Relationships Maintaining strong relationships with suppliers, distributors, and customers can provide a competitive edge. Loyalty can be built through excellent customer service, consistent quality, and exclusive partnerships.
Cost Leadership Achieving a low-cost structure can help existing businesses fend off new entrants. By becoming a cost leader, a company can offer competitive pricing that new entrants may find difficult to match.
Patents and Trademarks Securing intellectual property rights such as patents and trademarks can create legal barriers for new entrants. These protections can prevent others from copying or closely imitating a companyâs products or processes.