how to overcome barriers to entry
companies deploy a number of strategies to avoid or overcome barriers to entry here are some common barriers and potential solutions to address them if governments are employing trade sanctions it may be more difficult to import or export goods in relation to that country companies may seek different markets to work with or seek which products are specifically excluded from trade sanctions if all else fails a company may simply delay the timing of transacting with the country with the sanction as many government sanctions are temporary companies may preemptively decide they want to burden the consumer with additional barrier charges such as import tariffs or taxes companies may also seek ways to avoid taxes such as partnering with local organizations to manufacture goods or develop value added activities in the local market so the imported goods are assessed at a lower value and assessed lower fees a company seeking to join or create a brand new market may simply not have enough information needed to feel it may be successful for these types of barriers it may be best for the company to develop a minimum viable product for market research this test product may be used to elicit consumer feedback as well as shape financial planning expectations a company may also consider acquiring an existing company within the market it seeks to join not only will this company have already overcome some if not all aspects of the barriers to entry the company may have knowledge and information useful to the long term success of the company in some cases the market leader position is so advanced as to be nearly impossible to catch in the short term for these barriers companies may consider using a disruptive pricing model and even incurring a short term loss to steal long term customers a company may also set difference objectives such as be the lowest cost producer though many costs likely can t be overcome a company may consider using open source software instead of custom proprietary software to cut costs the company may seek short term leases instead of capital investments for equipment to gauge financial success in the near term the company may also choose to only manufacture on demand or on order to avoid over committing resources that could have been used elsewhere 