Barriers to market entry

In conclusion, we could say that entry requirements are justified inasmuch as they are necessary to guarantee the effectiveness or efficiency of pharmaceuticals. However, establishing or maintaining unnecessary requirements to this end is tantamount to establishing costs that constitute barriers to market entry which some companies, especially smaller ones, will be unable to clear. Ultimately, these barriers also weaken competition and the consequent possibility of prices being forced down. 

These two considerations have not declined in importance with time. As medicines inexorably climb in price over the rate of inflation and less westernized countries develop pharmaceutical industries, admittedly small compared to the financial magnitude of major western companies, western governments are caught between two conflicting interests. The interest of the citizen who cannot access the medicines they need and the western pharmaceutical companies fear that competition will prevent annual record profits. To relinquish the pharmaceutical product patent will reduce barriers to market entry, facilitating competition and leading to lower drug prices at home and abroad. 

In today s world, distance is no longer a barrier to market entry, technologies are rapidly replicated by competitors, and information and communications technologies are shaping a new economic order. To manage their business operations effectively, organizations must now view their playing field as... 

Demonstration projects can take many different forms, and each project has its own unique set of goals that it aims to accomplish. This section describes some of the barriers to market entry that are commonly addressed by these projects. 

This paper asks why we continue to strengthen an ill-functioning institution. Let us cut back the barriers to access and reassess how medicines, new and old, can be delivered effectively. There are two pharmaceutical patent types the product patent, that is, the chemical itself and process patents, that is, the ways a medicine can be manufactured or administered. The difference between the two is that whilst the process patent only makes market entry more difficult, the product patent is an absolute bar to market entry and product competition. Simply, where there is a product patent the chemical... 

The current developmental advantage of Denmark for organic products must be used to strengthen the position in the export markets while the barriers for market entry are still low, which means while the export markets are not yet occupied by local suppliers or brands. 

First, the pharmaceutical market failures mentioned above may be empirically inconsequential, which may either render their regulation unnecessary or make it advisable to use more flexible price control policies. For example, justifications for regulation that are based on the virtual absence of competition seem weak when one observes markets with products whose patent has expired. When a patent expires barriers to entry should disappear, since the composition of the active ingredient becomes public, and other companies should not have too many problems to reproduce the production process. The reasons brandished for price regulation when any company can manufacture a generic to compete with the brand product find no justification in theory. 

In recent years in some developed countries, the requisite of presenting economic evaluation (that is, pharmacoeconomic) studies of new dmgs has been introduced alongside the existing one of clinical trials. These studies have to provide proof of their efficiency (or cost-effectiveness) as a condition for the public financing of the new product. These studies improve information and market transparency and may help to make competition keener, but like the earlier requirements regarding effectiveness and safety, they constitute an additional cost factor and as such raise further barriers to entry. 

If competition was to be introduced in a natural monopoly, the transportation system owner may create technical or economic barriers to entry for potential competitors. If a competitor attempts to enter the existing market by constructing a new pipeline, the incumbent transportation system owner will have the option of increasing the throughput and reducing the tariff until it eliminates potential willingness to construct a new competing pipeline, provided there is excess capacity in the system. 

In planning, the unseen market competitors are rarely featured as drivers in a market yet as barriers to entry they form sometimes insurmountable hurdles. Distraction, which is given negligible attention when compared to direct competition, occurs in the external market because people are overwhelmed with information. 

More than 160 years since the technology was first demonstrated, fuel cells finally appear to be close to achieving the levels of cost and performance needed for success in the commercial marketplace. Nevertheless, the early markets for stationary fuel cells are smaller and less attractive than widely perceived, and the primary market is filled with multiple competitors and barriers to entry. Should high-temperature fuel cells, especially sofcs, achieve the targets that are currently the focus of massive public and private r d, they could by themselves usher in a fuel cell economy. 

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