When firms with well-established brand names or company reputations dominate the market, making it difficult for new competitors to enter, they can BEST be described as benefiting from barriers to entry based on

Question

Quizplus · Accepted Answer

Product differentiation creates a scenario where established brands or companies have a distinct market position that new entrants find hard to replicate or compete against, acting as a barrier to entry. This is because consumers recognize and trust the established brand, making it difficult for new competitors to gain market share.

When Firms with Well-Established Brand Names or Company Reputations Dominate