DWK Foods has developed a line of cookies and candies sweetened exclusively with organic honey. Although DWK is selling some of the products over the Internet, in order to gain economies of scale the products must be sold in retail outlets as well. The main barrier to entry DWK is likely to encounter here is:

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The main barrier to entry for DWK Foods in this scenario is access to distribution channels. In order to gain economies of scale, they need to sell their products in retail outlets as well, which requires access to established distribution channels. This can be difficult for new companies to obtain, as established retailers often have long-standing relationships with other suppliers and may be hesitant to take on new products from an unknown source. However, once DWK Foods is able to establish a foothold in the market, their use of organic honey as a sweetener may provide a unique selling proposition that can help them differentiate themselves from other competitors.

DWK Foods Has Developed a Line of Cookies and Candies