Overcoming barriers to entry

capri · Jun 23, 2023

It so happened that some local businesspeople recently launched a venture with a view to competing directly with entrepreneurs who sell food in informal kiosks. These businesspersons however soon learned that it was impossible to dislodge the informal food vendors.

What was particularly strange about this scenario is that, compared to the informal food sellers, the new entrants were preparing food in a more hygienic environment

Why do you think the new businesspersons failed to outcompete the informal food sellers?

Etini Willie · Jun 23, 2023

To breakthrough a barrier to entry in an industry, you have to find a gap in the industry and aim to fill in that gap. That would make your product very unique and drag customers to you. It requires creativity though.

Passiveearner · Jun 23, 2023

Well, as far as food businesses are concerned, they may fail or prosper, depending on the location and nature of the business. We have many food businesses getting closed as they had to face many issues.

eldavis · Jun 23, 2023

I think the mistake they made was to try compete. Instead of trying to compete with them instantly, it would have been wise to first study and find a weakness or flaw. Where are the places they can approach ?

cherry123 · Jun 24, 2023

it is about being able to have your uniqueness. you can go ahead to find a gap and fill it in the industry. These would make the product very unique and drag customers to the business

Shavkat · Jun 24, 2023

In my country, informal vendors or not are still required to have business permits to operate. It can be controlled by the local government. If they tend to be illegal in certain ways, then they should be punished.

hastral45 · Jun 24, 2023

capri said:
It so happened that some local businesspeople recently launched a venture with a view to competing directly with entrepreneurs who sell food in informal kiosks. These businesspersons however soon learned that it was impossible to dislodge the informal food vendors.

What was particularly strange about this scenario is that, compared to the informal food sellers, the new entrants were preparing food in a more hygienic environment

Why do you think the new businesspersons failed to outcompete the informal food sellers?

Experience they said is the best teacher. You can't compare a newly established business with old established businezz that has gained lots of experience and patronage. A new business has to start from somewhere.

Overcoming barriers to entry

capri

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Etini Willie

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Passiveearner

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eldavis

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cherry123

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Shavkat

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hastral45

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